Rounding vs. Truncating

NotACPA

Fidelity Investments, and perhaps others, posts the value of positions held using truncation. So that if the current quote for a security, when multiplied by the full and fractional shares held, comes to a value ending between $0.005 and the next $0.0049, Fidelity will truncate the fractional penny.

Q, on the other hand, uses 5/4 rounding. The result is that frequently the value of a single security will be off by a penny … and the account can be off by several pennies when this happens to multiple securities (usually, but not always, funds).

SO, my idea it to add an option to Q, at the security level, to use truncation instead of rounding. This will enable Q's records to match those of Fidelity and any other FIs that truncate.

NotACPA

Adding the option at the account level would also work. Or, perhaps, even at the FI level.

q_lurker

At the security level would not work. If one held the same security with different FIs, one FI might treat it one way and the other the different way.

At the FI level would seem cumbersome to me, especially for someone doing manual entry (not downloading) and perhaps not using precise or consistent FI names. Likewise, selections like Fidelity Brokerage vs Fidelity NetBenefits vs other Fidelity names could become confusing or at least not obvious. So account by account would seem to be the preferential implementation as I see it.

But over and above that aspect, I believe Quicken should follow accepted standards for arithmetic which I believe is to round — 0.000x through 0.004x round down; 0.005 through 0.009x round up. My attitude is that when Quicken tries to be everything for everybody, the program degrades. I don't see any justification for Fidelity's approach nor do I recall hearing about any other FI using that approach.

Question re Fidelity, on a sale do they keep the penny? Sell 1.119 shares for $1.00 per share, you get $1.11 instead of $1.12? I suppose likewise, you'd pay $1.11 for those shares instead of $1.12.

NotACPA

Yep, they keep (or, at least don't pass along) that fractional penny that's truncated. Haven't examined the buy side as closely … so I'm not sure what happens then.

As of today's close, the club account (I'm the Treasurer) is off by $0.03 and my personal accounts are off by $0.06. A penny in one account, 2 penny in another and 3 pennies in a third, all in Mutual Fund accounts.

Another MF account and a stock only account show 0 difference

Now, agreed 9 cents isn't significant but it's a nuisance that should be easily corrected.

re: "accepted standards". Normally I'd agree, but Q should also follow the reality of what the various FI's do. Fidelity Investments (the FI name that I use) apparently doesn't "accept" that alleged standard.

erniealvero

There should be an option on rounding vs truncating on cents at the account level. This can be done in settings at the account level. It is not only true on Fidelity Investments account but on other investment accounts such as LPL Financial and JPMorgan investment accounts. When you are trying to reconcile monthly statement from the investment institution versus Quicken account it can be off by several cents if account has multiple securities. That is not very good for accounting purposes. You want accuracy to the penny. I've been a Quicken user since 1997. I use it for logging all financial transactions.