investment account with associated cash account suggetion

kerrychesbro's Avatar

kerrychesbro

21 Jan, 2024 03:48 PM

I have an investment account with an associated cash account. The two accounts work well for me and are left over from importing from MS Money and Quicken.

My issue is when a non-investment transaction is downloaded from the investment firm (Schwab in my case), it comes in as either a MiscExp or MiscInc, depending in the funds are going in or out of the account.

To handle this, I end up manually duplicating the transaction in the cash account and deleting it in the investment account. Then that transaction reappears in the next download for a couple of weeks until it ages out, so I have to delete it multiple times.

For a dividend, stock sale, purchase, etc., MD has an action like Div/Xfr which allows transferring the amount to the cash account by entering the cash account name in the Transfer field. The funds show up in the cash account with the description coming from the investment account transaction. When a transaction of this type is downloaded, I simply have to change the action to the xxxXfr and enter the cash account name.

I would like similar actions (ExpXfr/IncXfr) for the MiscExp or MiscInc transactions. That would allow the funds to be transferred to the cash account without having to manually enter and then delete it. Since the transaction still exists in the investment account, it will be skipped in subsequent downloads. The mechanism to support the DivXfr, etc. actions already exists, so this could be an easy addition.

Of course, a direct link between paired accounts (like supported in Quicken) would be the best solution.

  1. 1 Posted by dwg on 21 Jan, 2024 08:59 PM

    dwg's Avatar

    Why cannot you use the Xfr transaction type? and type of Inc transaction has to have an associated investment.

    You could also leave the Misc as is and add a manual Xfr transaction.

    Instead of having linked accounts Moneydance has implemented using the investment account itself like a bank account.

  2. 2 Posted by kerrychesbro on 21 Jan, 2024 09:45 PM

    kerrychesbro's Avatar

    The XFR type leaves the transaction amount in the investment account, so the
    income or expense is doubled, once in the investment account and again in
    the cash account.

    If a Div transaction comes in, you must change it to a DivXfr to have the
    balances be correct.

    From: dwg <[email blocked]>
    Sent: Sunday, January 21, 2024 12:59 PM
    To: [email blocked]
    Subject: Re: investment account with associated cash account suggetion
    [Suggestions #16211]

  3. 3 Posted by dwg on 21 Jan, 2024 09:54 PM

    dwg's Avatar

    A Xfr transaction with a positive amount transfer money into the account from the account or category as specified in the category field, whereas a Xfr transaction with a negative amount will transfer money out of the account to the indicated account or category.

  4. 4 Posted by kerrychesbro on 23 Jan, 2024 02:35 AM

    kerrychesbro's Avatar

    OK, what I am trying to do accomplish is what I can do with a DIV transaction that gets downloaded into the investment account.

    I edit the transaction, changing the Div action to DivXfr, the cash account name into the Transfer field, and depending on the dividend type (dividend or interest), the category to an interest category (it defaults to Dividend Income). That causes the funds to end up in the cash account with the proper category for the tax report. No manual entries, simply a quick edit.

    With my suggestion, an example of a MisExp for a transaction that pays a credit card bill, change the MisExp to ExpXfr, the transfer field to the cash account and the category to the account for that credit card. Now the funds will be deducted from the cash account and be credited to the credit card account.

    A MisInc example would be a transaction for a deposited check. Change the MisInc to IncXfr, the transfer field to the cash account and the category to the funds source, like income tax refund. The only limitation is that you can't do a split on the category if you want the funds to be split into several categories which would be useful for a payroll check for example where you want the FICA, taxes withheld, etc. split out.

    Now, maybe a XFR would suffice for both if one could enter a category (currently a greyed-out field). That would transfer the funds with the direction being based on the + or - of the amount. A way that this could be used would be an EFT from an IRA account into an investment account. The transaction would be XFR from the IRA account into the cash account (or investment if no associated cash account) and the category is some income category like Retirement Income: IRA. Today, I have a XFR from the IRA to the cash account and then manually enter another transaction with a split where one category is the Retirement Income: IRA and the other is a dummy with the amount as a negative, so the transaction has a zero balance.

    DivXfr already has some of the XFR suggestions except that the category only can be income or expense categories, not accounts like bank, credit cards, etc.

  5. 5 Posted by dwg on 23 Jan, 2024 02:57 AM

    dwg's Avatar

    A DivXfr transaction combines two transactions into one. A dividend transaction plus a transfer transaction.

    The Dividend part of the transaction makes use of the Category field to specify the type of income i.e. it allows you to choose and Income or Expense category. The Xfr part of the transaction makes use of the Transfer field to specify the destination of the funds. The transfer field can be a category or an account.

    The rest of the fields are common to both transactions.

  6. 6 Posted by kerrychesbro on 23 Jan, 2024 03:05 AM

    kerrychesbro's Avatar

    Interesting, after replying above, I got to thinking about the DivXfr action:
    "DivXfr already has some of the XFR suggestions except that the category only can be income or expense categories, not accounts like bank, credit cards, etc."

    For the IRA to Investment (or associated cash account), I tried a Div/XFR in the IRA account with the transfer field being the investment account name or associated cash one in my case and the category field being Retirement Income: IRA. This did exactly what I described above with one transaction instead of two (XFR and dummy). Further, since this is an automatic monthly transfer, I can use a Transaction Reminder with an Auto Commit to have it entered automatically.

Reply to this discussion

Internal reply

Formatting help / Preview (switch to plain text) No formatting (switch to Markdown)

Attaching KB article:

»

Attached Files

You can attach files up to 10MB

If you don't have an account yet, we need to confirm you're human and not a machine trying to post spam.

Keyboard shortcuts

Generic

? Show this help
ESC Blurs the current field

Comment Form

r Focus the comment reply box
^ + ↩ Submit the comment

You can use Command ⌘ instead of Control ^ on Mac