tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/598-investment-fee-categoryInfinite Kind: Discussion 2018-10-18T14:04:35Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/387424172015-12-21T00:35:54Z2015-12-21T00:35:54ZInvestment Fee Category<div><p>There is a default expense sub-category to investment category
named "trading commission". If you want, you can create a category
more to your liking by going to tools > categories, select
new.</p>
<p>You can make this the default category for your investment
account by going to account edit account and changing the default
on the edit account window.</p>
<p>In the investment transaction there is a fee category field as
well as a fee field for the charge. When making a stock trade you
would enter the category and amount of the fee in these fields.</p>
<p>Tom Freeman<br>
Infinite Kind Support</p></div>Tom Freemantag:infinitekind.tenderapp.com,2009-01-14:Comment/387424172015-12-21T02:30:46Z2015-12-21T02:30:46ZInvestment Fee Category<div><p>But it isn't an expense, is it? The fee is part of the cost of
the asset and the software is already handling it as such.</p>
<p>E.G.,<br>
Shares bought - 250<br>
Price/share - 103.00<br>
Fee - 8.95</p>
<p>The total amount of the transaction is 250 x 103 + 8.95 =
25,758.95, which is the cost basis of the security on the
Securities Detail screen, where the cost per share is 103.04. So
Moneydance has already capitalized the fee. I don't think it should
be expensed as well. If I were keeping a real set of books I think
this would put me out of balance by 8.95.</p>
<p>I can live with having a bogus expense category and subtracting
it from my total expenses, but I really think this is incorrect. Or
am I missing something?</p></div>djxb2000-1tag:infinitekind.tenderapp.com,2009-01-14:Comment/387424172015-12-21T04:36:51Z2015-12-21T04:36:51ZInvestment Fee Category<div><p>The commission payable on share purchases is not handled as an
expense it forms part of the cost basis of the shares and as such
it is treated as part of the capital expense.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/387424172015-12-21T22:29:10Z2015-12-21T22:29:10ZInvestment Fee Category<div><p>But the system is forcing me to enter a fee expense category for
the commission and it is appearing as an expense.</p></div>djxb2000-1tag:infinitekind.tenderapp.com,2009-01-14:Comment/387424172015-12-22T19:32:54Z2015-12-22T19:32:54ZInvestment Fee Category<div><p>Perhaps a screen shot showing what is happening may help us
understand what is going on.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/387424172015-12-22T20:41:56Z2015-12-22T20:41:56ZInvestment Fee Category<div><p>You can enter your transactions in two ways.</p>
<p>The first is you enter 250 shares and the $103 price, then you
put in the fee of 8.95. for a transaction total of $25758.95.</p>
<p>The other is you just in 250 shares and the total transaction
cost of 25758.95, MD will calculate the cost per share as
103.0358.</p>
<p>The cost basis remains the same, the evaluation metrics stay the
same. Its all about keeping track of your commissions. And most
downloads of transactions will include the trading commission as
separate line item.</p>
<p>If the issue of concern is that the commissions show upon the
income and expense report, (the expenses is actually trapped in the
asset value) then you can toggle this specific category off on the
report.</p>
<p>I do wonder why it is recorded in the report when the rest of
the transaction isn't. I will query the lead developer why this is
so.</p>
<p>Tom Freeman<br>
Infinite Kind Support</p></div>Tom Freemantag:infinitekind.tenderapp.com,2009-01-14:Comment/387424172015-12-26T21:35:35Z2015-12-26T21:35:35ZInvestment Fee Category<div><p>I can certainly live with the expense category. It's not really
a problem. I just wanted to make sure I understood what was going
on. It was confusing.</p>
<p>You can close this, and thanks for your help.</p></div>djxb2000-1