ReinvDiv vs Divx and Boughtx
Litani Member ✭
I have multiple accounts with different brokers. My accounts have “Show cash in a checking account” selected. The download transactions behave differently in different accounts. One account uses ReinvDiv. Another Account uses Divx and Boughtx.
Both accounts reconcile at the end of the month. However, ReinvDiv does not show the corresponding transactions in the checking account.
I would like to be consistent. Is one method better than the other?
Rocket J Squirrel SuperUser ✭✭✭✭✭
Either way will work, but here are some reasons I prefer the ReinvDiv.
Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.0
- It avoids the pair of transfers in the linked checking account which only cancel each other out and might be considered unnecessary clutter.
- It does not increase the “Amount Invested” in the security because Quicken knows that it's a reinvestment. With a BoughtX, Quicken assumes you are buying the securities with money out of your pocket. Amount Invested is a quantity used as an intermediate calculation for other statistics, such as Return and ROI. Those statistics will be wrong unless the Reinvestment transaction is used.