How do I enter a reinvestment and where do I enter the reinvestment?

I like to enter my transactions manually. When reconciling my bank account and there has been a dividend deposited into the account and on the same date the bank then reinvested the dividend. Would this be a 'transfer'?

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    You're going to have to explain more completely your "real world" situation.  Typically dividends aren't deposited in "bank" accounts, they're deposited into some Investment Account.
    That said, there can be situations where dividends that are deposited into an Investment Account are automatically moved to an associated checking account.  In that case your manual entry in the investment Account could be handled as two entries - a DIV action and an XOut action - or in one transaction a DivX action.
    If a dividend was deposited in your bank, but the dividend was then reinvested, you'd need to record a transfer out of the checking Account to the Investment Account and then use that cash for a Bought action.