tag:infinitekind.tenderapp.com,2009-01-14:/discussions/problems/65686-moneydance-calculating-the-cost-per-share-incorrectlyInfinite Kind: Discussion 2021-02-11T10:11:39Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-06T15:30:02Z2020-12-06T15:30:02ZMoneydance calculating the cost per share incorrectly<div><p>I think you will have to lay out your transactions so we can comment.</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-06T16:03:02Z2020-12-07T09:20:07ZMoneydance calculating the cost per share incorrectly<div><p>Hi Stuart,</p>
<p>Yeah, I purchased 90 shares of Apple for 109.38 in August 2016 and sold 15 in May 2017. There was a 1:4 split this past August. So, I assume that my cost per share should be $27.34 per share. But Moneydance calculates $31.45 per share. If I delete the sale transaction in May 2017, MD calculates cost per share correctly. Weird. But, as I mentioned in first post, the sale transaction can't fully explain the problem, because I have a similar set of transactions of JPMorgan without the same incorrect cost per share calculation.</p>
<p>Thanks you any help you might have.</p>
<p>Paul</p></div>PaulVtag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-07T10:33:56Z2020-12-07T10:33:56ZMoneydance calculating the cost per share incorrectly<div><p>Well, I may misunderstand the maths, and I am sure someone will correct me if so....</p>
<p>You bought 90 @ 109.38 each = $9,844.20<br>
You sold 15 (sale price is irrelevant). New cost basis is 75 * $109.38 = $8,203.50<br>
SPLIT 4:1 simply multiplies the qty * 4, thus 300 shares at $ 27.35 = $8,203.50</p>
<p>Nothing wrong?</p>
<p>Do you have average cost basis or lot control set..?</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-07T18:42:58Z2020-12-07T18:42:59ZMoneydance calculating the cost per share incorrectly<div><p>Exactly. My calculations are the same as yours. I have it set to average cost basis, which I presume is the default--I don't think I modified anything.</p></div>PaulVtag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-07T22:12:02Z2020-12-07T22:12:02ZMoneydance calculating the cost per share incorrectly<div><p>I just entered dummy txns as per your scenario and I get the right answer. The only way to look further is perhaps if you share extracts / screenshots of the relevant txns and the summary screens. I wonder if you have an additional txn hiding somewhere? Perhaps an adjustment of some sort? You could run my script and set it to filter for the account and security (splits on) and see what it extracts...?</p>
<p>(note: not support, just a user)</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-18T02:50:19Z2020-12-18T02:50:19ZMoneydance calculating the cost per share incorrectly<div><p>I see same or similar problem. I am holding APPL shares in 2 accounts and both now show erroneous Cost Basis.<br>
I am attaching screen shots for both accounts.<br>
The screen shots for the 1999 purchase do not show some SALE transactions, but share sales do not affect the cost basis.</p></div>Fredtag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-18T07:36:43Z2020-12-18T07:36:43ZMoneydance calculating the cost per share incorrectly<div><p>Fred, on your first example, why are your qty shares showing as 2172? Surely 50*2*2*7*4 = 5600. I have entered your data and get 5600 and 0.60479 per share. Am I missing something? Did you sell some or something?</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-18T12:40:45Z2020-12-18T12:40:45ZMoneydance calculating the cost per share incorrectly<div><p>Fred. Perhaps run my extract script on this account and we can see all the transactions..?</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-18T16:22:10Z2020-12-18T16:22:10ZMoneydance calculating the cost per share incorrectly<div><p>Stuart,<br>
Yes i did sell shares yearly over the past few years, which results in the correct 2172 number as currently remaining. As I said, selling shares should not affect cost basis.</p></div>Fredtag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-18T16:26:45Z2020-12-18T16:26:45ZMoneydance calculating the cost per share incorrectly<div><p>Hi yes, I get that, I was trying to reproduce your problem and thus, needed the same data... It looked like something had gone wrong. Anyway, we would need to see your exact txns to help further.</p>
<p>Do you have average lot control on for the account/security?</p>
<p>I suspect if I was in your position, I would see if deleting the buy/sell's and recreating them fixes the problem. A long time ago I had a cost basis issue that was unexplainable and recreating the txn fixed it.. (perhaps it triggered a recalc). If that. didn't work I suspect I would do a fake sell all and fake buy all - but I understand in the US you would lose the long/short information....</p>
<p>(a fellow user)</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-18T16:41:46Z2020-12-18T16:41:46ZMoneydance calculating the cost per share incorrectly<div><p>What does "average lot control" do and why should I have it on or off? Only have one buy, several sell.<br>
In the 2011 position, you see all transactions in the screenshot provided.<br>
Fore the 1999 position, here are 2 screenshots showing all activity there - as I said, only sales, no additional bus.</p></div>Fredtag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-18T16:44:30Z2020-12-18T16:44:30ZMoneydance calculating the cost per share incorrectly<div><p>Average cost control completely changes cost basis calculations from Lot control.. Lot control matches buys and sells as matched pairs, where-as average keeps a rolling average calculation. If you therefore have multiple buys/sells with Lot control you will get a different cost basis to average control.</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722020-12-30T22:42:58Z2021-01-04T10:51:34ZMoneydance calculating the cost per share incorrectly<div><p>Hi Stuart and Fred,</p>
<p>Just coming back to this problem again today. In playing around with my own transactions, I notice that the issue is not actually with the sale transaction per se. The sale transaction only became problematic after the August 31, 2020, 4:1 split. When I remove the split, the cost basis is right, even with the sell transaction I had in 2017.</p>
<p>What Moneydance seems to be doing with the split is reducing the value that should have been taken from the cost basis (due to the sale of shares). In other words, I initially purchased 90 shares at $109.39. When I sold 15 of those shares in 2017 the cost basis should fall from $9845.09 to $8,204.24 or a difference of $1,640.85 ( cost per share still $109.39). When I remove the split, Moneydance does calculate my cost basis at $8,204.24 (see first screenshot attached). When I add the split back in, however, my cost basis is $9,434.88 or a difference of only $410.21 than the original cost basis of $9845.09 (see second screenshot attached). Thus, Moneydance (because of the 4:1 split) is dividing the actual reduction in cost basis by 4, which thereby increases the cost basis per share from $27.35 (or $109.39/4) to $31.45.</p>
<p>This seems like a very problematic bug in the software that must affect a lot of users.</p></div>PaulVtag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722021-01-04T13:38:58Z2021-01-04T13:38:58ZMoneydance calculating the cost per share incorrectly<div><p>Hi PaulV, I believe the MD routines does not know whether to reduce the total cost basis when you sell using data before or after the split. We suspect that if you turn on lot control for shares with splits and assign the lots when you sell, that MD gives a correct calculation. Can you check this?</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/488834722021-01-04T14:28:57Z2021-01-04T14:28:58ZMoneydance calculating the cost per share incorrectly<div><p>Hi Stuart,</p>
<p>I see what you mean, and, yes, that worked! Thank you very much for your help!</p>
<p>All the best for 2021!</p>
<p>Paul</p></div>PaulV