Corporate Spin-off

Cindyc

I'm trying to enter a Corporate Spin-off. I found the directions online on how to enter it, but everytime I try to do it, I keep getting an error message indicating that I already have that name used. I'm very frustrated. I just got off the phone with tech support and it still won't work for me.

I owned shares of Pfizer stock. Pfizer spun off a company called Viatris. I want to record that spinoff in Quicken. I selected "Corporate spin-off" in the transaction menu. I then typed in "Pfizer" in the top field called "Security Name". I then typed in "Viatris" in the next field which is "New Company". In the field called "New Shares Issued", I put in ".12407" which is the number of shares of Viatris given for every one share of Pfizer. In the "Cost per Old Share", I put in the price per share for Pfizer stock on the day it spun off. In the "Cost per New Share", I put in the price per share of Viatris stock on the day it was spun off.

When I hit "Enter", I get an error message indicating "Security name already in use. Please choose a new name."

It seems pretty straight forward. Enter name of current stock that spunoff
Enter name of new stock.

Why does it keep giving me this error message. What am I doing wrong?

Help is appreciated. Thank you!

splasher

The corporate spin-off process needs for the new security to NOT exist when it is executed.

Did you create prior to doing the spin-off?  If so, delete it.

q_lurker

This action actually took place last November - 4 months ago.  
An option you might want to take:

• Use Corporate Spinoff as a different company (Viatris-2, maybe)
• You'll get a set of Add Shares transactions for that company.  How many depends on how many lots of Pfizer you had.
• Edit each of those Add Shares transaction to reflect the correct Viatris company, the security already in your file
• When finished, you will have no 'Viatris-2' transactions.  Delete that security.  
• If you already have shares of Viatris from other Add Shares or from Placeholders, etc., you will need to delete, edit, or otherwise correct those transactions so that your Viatris share count is correct.

If the Corporate spinoff produces a fractional share of Viatris, you'll need to sell that fractional share for any Cash-in-lieu amount you received.

FWIW: a prior discussion on that transaction 
https://community.quicken.com/discussion/7883338/how-to-have-correct-cost-basis-in-a-corporate-spinoff-e-g-pfizer-upjohn-mylan-transaction/p1
Unfortunately, the early stages took on a rather contentious tone and there may be a lot to sift through. 

Cindyc

I'm not sure how to reply directly under someone's comment.... so I'm responding to Splasher here:

I tried to create the Corporate spinoff transaction so many times, but never successfully. After reading Splasher's suggestion, I ran a Security List under the Investments section and Viatris was on the list. Even though I had never gotten the spinoff transaction done, Quicken somehow added Viatris to the list of Securities for me. I DELETED Viatris off the the list and then I was able to complete the Spinoff transaction.

What is REALLY frustrating is that I spent over an hour on the phone with a Quicken Tech Support person and they couldn't help me. They had me "report a problem" to Quicken which I didn't think was the proper thing to do as I was just asking why Quicken kept giving me that error message. The Tech Support person also told me that I needed to contact my Brokerage House.... I didn't see how they could help me solve a Quicken entry issue.

Thanks so much for that suggestion Splasher.

I will now read the other suggestion from q-Lurker

Cindyc

I have now read q-lurker's comments:

I actually did receive a check from Pfizer for the FRACTIONAL share since they indicated that they don't issue fractional shares in the spinoff. Once I executed the Spinoff of Viatris in Quicken, it showed the whole shares and the fractional shares that I now owned. Since I was issued a check for the fractional share and I had already deposited the check into my bank account, I did the following to make sure my shares of Viatris no longer included the fractional shares since I don't own them but was given cash in lieu of the fractional shares.

I took the total amount of the check and divided it by the fractional shares to verify the price per share I had entered was correct. I then did a SELL transaction of the fractional shares X the $ amount per share. It actually came out exactly to the amount of my check which was wonderful! Since that cash is not part of a balance in the brokerage house, but rather already sent to me as a check, I indicated in my Sell transaction that the cash went into my checking account so that there would be a paper trail of where that cash went. I then deleted the original cash deposit in my checking account since that would be a double entry of the same money.

I'm not sure if I did this transaction correctly, but it at least makes everything balance. My brokerage account now shows the true amount of shares that I own for Viatris. It shows that the fractional shares were given to me in cash and the cash went into my checking account.

I did click on the link to read the previous discussions about the corporate spinoff of Viatris and how to handle. I got real confused really quickly. One of the reasons that I purchased Quicken is because I'm not a financial or accounting wiz.... Everytime I enter something in Quicken, I wonder if I'm doing it correctly...

q_lurker

Cindyc said:

I have now read q-lurker's comments:
...

The way you handled the fractional shares sounds perfect.  

I will add, when entering the sale in Quicken, all you needed to supply was the correct number of fractional shares, and the amount of the check.  Quicken would have computed the price/share for you.  

Well done.

Cindyc

Thank you!

Any suggestions as to the best way to learn more about how to use Quicken? There is not a manual, correct? Or is there?

Cindyc

> @q_lurker said:
> The way you handled the fractional shares sounds perfect.  
>
> I will add, when entering the sale in Quicken, all you needed to supply was the correct number of fractional shares, and the amount of the check.  Quicken would have computed the price/share for you.  
>
> Well done.

I just figured out how to respond to a particular comment.

q_lurker

Cindyc said:

Thank you!

Any suggestions as to the best way to learn more about how to use Quicken? There is not a manual, correct? Or is there?

The Official Guide books were quite solid as I understand it.  (Very well edited, right @mshiggins).  While the last (?) edition in 2018 is now almost three years out of date, the basis premises on using the program still hold true.  It would be a worthwhile resource to take a look at.  

Posting even the simplest of questions on this site can also be very helpful.  Just be as direct and clear as you can.

Cindyc

The corporate spin-off process needs for the new security to NOT exist when it is executed.
Did you create prior to doing the spin-off? If so, delete it.


> @splasher said:
> The corporate spin-off process needs for the new security to NOT exist when it is executed.Did you create prior to doing the spin-off?  If so, delete it.

I learned a bit more today. I actually own Pfizer stock under 2 different brokerage accounts. Since I am entering all my financial info for the first time in Quicken, I entered all the Pfizer transactions in the first account and then did the corporate spin-off.

I then went and entered all the transactions for the 2nd account with Pfizer stock. When I went to do the corporate spinoff for that account, I went back to the Security List to delete Viatris, but soon learned that Quicken would not allow me to delete it because it is being used. So I had to delete the various transactions that Quicken adds when you do a Corporate Spinoff. I then deleted Viatris from the Security List.

This time when I did the Corporate Spinoff in the first account that contained Pfizer, it automatically created the spinoff transactions in the 2nd account. I think I now understand much better the Corporate Spinoff process in Quicken. Thanks again for all the help!

Cindyc

> @q_lurker said:
> The Official Guide books were quite solid as I understand it.  (Very well edited, right @mshiggins).  While the last (?) edition in 2018 is now almost three years out of date, the basis premises on using the program still hold true.  It would be a worthwhile resource to take a look at.  
>
> Posting even the simplest of questions on this site can also be very helpful.  Just be as direct and clear as you can.

I will look for the Guide Book. Thanks again!