How do I fix an incorrect negative cash balance in an investment account (Q Mac 6.10.3)

rolinger

My investment account in Quicken for Mac version 6.10.3 is showing a negative cash balance which is in error. The account contains securities and a money market fund held with Vanguard. All of the securities and the MMF in Quicken are in agreement with the info on Vanguard's website, but Quicken is also insisting that there is a negative cash balance.
When I add the negative cash balance onto what Quicken says is the current market value of the account it is exactly the same as the balance on Vanguard's site.
Anyone have any idea on how to rectify this?

jacobs

A negative balance in an investment account is typically caused because you purchased a security(ies) in the account but didn't enter the cash source of the funds used to make the purchase. The cash could come from a transfer from an external account (e.g. checking), but that doesn't seem likely in your case because you say the numbers add up. In the "real world" at Vanguard, did you use money from the money market fund to purchase your security(ies)? If so, in Quicken, you may have to enter a Sell transaction from the Money Market fund to reduce the amount in the MMF and to increase the cash balance. 

rolinger

Thanks. Wouldn't your idea result in a negative balance, or at least a debit, to the MMF in this account in Quicken? I'm thinking that would give an incorrect available balance.

jacobs

Yes, my suggestion would result in a decrease in the money market fund balance. Are you saying that the money market fund balance matches Vanguard in the real world? If so, let's take a step back…

What are the transactions in the account register which are reducing the cash balance? I was assuming these were Buy transaction(s). At Vanguard, when you executed the buy(s), where did the funds come from? 

rolinger

Yes, the balance in the MMF is correct and always seems to be. I seldom leave much in it at this is my primary stock account and when there are sufficient funds I purchase more stock shares.
I have no idea what transactions are causing the negative balance. Thus my problem.

jacobs

When you click on the account, and click on the Transactions tab, look at the transactions with a negative Amount. Or you might find it easier if you click the Columns icon and add the Cash In and Cash Out columns, so you can just focus on the transactions with Cash Out. What transactions are these? Are they Buy transactions? If so, looking at your Vanguard statement or website, where did the funds come from for the Buy transaction(s)?

rolinger

So I have found where at least part of the problem is coming from. I have some BP (British Petroleum) holdings and am charged a fee each time I'm paid a dividend. The dividend comes in first as a cash credit and the fee is taken out as a cash debit leaving the balance as cash available. The balance is also credited as dividend reinvestment leaving the cash balance in place.
Seems like there ought to be a way for this to be recognized and handled automatically by Quicken.