Is there a solution to the Reinvested dividends problem when trying to reconcile the account?

richard baker

When trying to reconcile an account that has  reinvestment dividend, an error occurs. You have to change the reinvestment action to 2 actions--1st recording the dividend, then 2nd have to buy the amount of stock that equals the dividend and stock price.
Has this been fixed or reported before?

Jim_Harman

When a dividend is reinvested in one transaction, the cash balance should not be changing, because all of the dividend is used to purchase more shares.

Sometimes a reinvested dividend will be downloaded as two transactions, a Div and a Bought, perhaps with the Bought a few days after the Div. The Cash balance will go up between the transactions, then back down.

If there is a Placeholder in the account for the security in question on a date later than the reinvestment, you may see odd things with the cash balance. 

Go to Edit > Preferences > Investing transactions and make sure "Show hidden transactions" is checked to make sure there is not a Placeholder that might account for the problem you are seeing.

GeoffG

What error? I've not experienced any error message, nor had to change an entry.

richard baker

I don't receive an error messsage; I can not reconcile the investment account because the reinvestment of a (i.e.) dividend causes the balance not to be Zero. Do you reconcile your investment monthly accounts? Can you balance an account that has a dividend "reinvested"

Jim_Harman

When a dividend is reinvested in one transaction, the cash balance should not be changing, because all of the dividend is used to purchase more shares.

Sometimes a reinvested dividend will be downloaded as two transactions, a Div and a Bought, perhaps with the Bought a few days after the Div. The Cash balance will go up between the transactions, then back down.

If there is a Placeholder in the account for the security in question on a date later than the reinvestment, you may see odd things with the cash balance. 

Go to Edit > Preferences > Investing transactions and make sure "Show hidden transactions" is checked to make sure there is not a Placeholder that might account for the problem you are seeing.