Reverse split share totals wrong

D Bunker

Using QP 2019 R15.18. I am working on the cost basis of SDGAX which underwent a merger in 2005. The effect of the merger was a reverse split, 2497.588 old shares became 525.906 new shares. My post split total disagrees with my Excel spreadsheet total, yet all the individual lot entries (div & cap gains reinv) appear to be identical. Can I review the transaction history with the post split shares numbers in each lot in a report? I suspect some rounding error (or user error) with the reverse split. Thanks.

Tom Young

It's not clear how far off you are you are from your Excel spreadsheet number.  Are we talking a fraction of a share involving some numbers fairly far from the decimal point?  Or a lot more than that?

It would seem that the more important reconciliation would be between Quicken and the financial institution (FI) that's holding the shares.  Is Quicken in agreement with the FI or not?

You certainly can run an investment transaction report - Reports > Investing > Investment Transactions - and customize the report to focus only on that security and over the entire time you've owned it.  If you recorded the reverse split in Quicken back in 2005 you'd most likely see a "Remove" action for SDGAX and a series of "Add" entries for each lot existing at the time of the reverse split.  But if you've sold shares from then to now, either entire lots or portions of lots existing at the time, I don't think there's anyway to generate a report down at the lot level.  I think that the only way to derive this would be to run that Investment Transactions report and then each time there was a sale of those shares go look at the expanded holdings, (i.e., the view that shows you each and every lot), right before and then right after the sale.  That way you could determine how each lot changed or didn't change with each sale.

I have to believe Quicken is somehow maintaining the lot-level information, I'm just not aware how to tease that out with any of Quicken's standard reports.

D Bunker

Thanks Tom. The error was an entry error, so I am back on track. I get confused & frustrated because I can't seem to generate or export a report with the post split share numbers, but can view them only from account overview.
The next step is to sell some shares using average cost basis method. I am reconstructing current cost basis after several changes in brokerage firms, to the FI has the current number of shares without a cost basis. We do not interface electronically. I did NOT choose average cost basis when I started entering all the past transactions and will soon discover if that was a problem.

Tom Young

D Bunker said:

Thanks Tom. The error was an entry error, so I am back on track. I get confused & frustrated because I can't seem to generate or export a report with the post split share numbers, but can view them only from account overview.
The next step is to sell some shares using average cost basis method. I am reconstructing current cost basis after several changes in brokerage firms, to the FI has the current number of shares without a cost basis. We do not interface electronically. I did NOT choose average cost basis when I started entering all the past transactions and will soon discover if that was a problem.

The only place "average cost" enters the picture is at the time of sale.  So if you haven't sold any of the shares previously average cost at this point is irrelevant.  If you know how many dollars you spent in total and you know the number of shares you own then you know your average cost without having to work through all the detail of (# of shares x $/sh).

If you have sold shares in the past and used average cost then you're stuck with that method.

q_lurker

D Bunker said:

Thanks Tom. The error was an entry error, so I am back on track. I get confused & frustrated because I can't seem to generate or export a report with the post split share numbers, but can view them only from account overview.
The next step is to sell some shares using average cost basis method. I am reconstructing current cost basis after several changes in brokerage firms, to the FI has the current number of shares without a cost basis. We do not interface electronically. I did NOT choose average cost basis when I started entering all the past transactions and will soon discover if that was a problem.

@D Bunker:  There is no provision in Quicken to report transactions dated before the split as if their shares quantities were post-split level.  All transactions are maintained with their original share counts and reported that way.  

@Tom Young:  The normal way for a split, even a reverse split to appear would be through a single StkSplt transaction.  Some brokers might choose a Remove/Add Shares sequence but that would be unusual in my experience and would not likely include all the lots individually for the Add side.

Tom Young

D Bunker said:

Thanks Tom. The error was an entry error, so I am back on track. I get confused & frustrated because I can't seem to generate or export a report with the post split share numbers, but can view them only from account overview.
The next step is to sell some shares using average cost basis method. I am reconstructing current cost basis after several changes in brokerage firms, to the FI has the current number of shares without a cost basis. We do not interface electronically. I did NOT choose average cost basis when I started entering all the past transactions and will soon discover if that was a problem.

@q.lurker

You're undoubtedly right.  I haven't had anything split on me for so long I'd completely forgotten the mechanics involved.  Mea Culpa.