How to record dividends/gains downloaded from Fidelity?

Question

I am not sure if Quicken is recording my dividends and capital gains from my Brokeragelink (401k) account in Fidelity.

When a dividend or gain is downloaded from Fidelity into my normal brokerage account in Quicken, it records only one transaction using ReinvDiv (or gain, if applicable).  When a dividend or gain is downloaded to my BrokerageLink account, it records a DIV or CCLONG, etc transaction and then another BOUGHT transaction.

I've experimented a bit by deleting the income transaction (DIV, CCLONG, etc) and editing the BOUGHT transaction to DIV, CCLONG, etc.   It doesn't appear to change anything insofar as the gain/loss data.

Can someone tell me if the two transactions are necessary and can I keep changing the BOUGHT transaction (and deleting the income transaction) or does this affect something?  Some may ask why I am bothering to change it and it's really just to make the register look cleaner.

Thanks.

1975Jumby · Answer

Thank you so much everyone!  Just wanted to make sure doing it either way would not affect the data in Quicken.  My Quicken and Fidelity amounts always match, but Fidelity doesn't count the cost of the dividend or gain reinvestment, so the gain percentage never matches with Quicken.   I want to know my true gain/loss on each fund, so this helps.

Tom Young · Answer

A reinvested distribution coded as a "reinvxxx" is exactly the same - accounting wise - as a download of the distribution followed by a bought action, using the distribution.

In my own Quicken Accounts I'll typically get a "reinvxxx" action if it's all dated on the same day, but not always.  Sometimes a "same day" transaction gets recorded in two parts.  Separate distribution actions followed by, a day later, are always recorded to two distinct transactions.

I'm not sure exactly where the inconsistency is originating, but as long as the "date" information is accurate, I really don't care.

If you have two entries that have two different dates and are changing the "Bought" to a reinvxxx, that's wrong, but the only thing it affects in Quicken is some metrics that focus on the "Cash" (distribution) element, most notably the IRR calculation  The difference this makes is generally very, very minor.  If the two entries have different dates then save yourself the time and trouble of changing them to reinvxxx actions.

Jim_Harman · Answer

The Div and CGLong followed by a Bought on the same day are the same as a ReinvDiv and ReinvLg.

You can edit the Div or CGLong to make it a Reinvest and delete the Bought if you want to make your register look cleaner.

But if the downloaded Bought is on a different day or if multiple income transactions are combined to make one Bought, I would leave the downloaded transactions as they are.