Bond Purchase accrued interest deducted twice [edited]

K N Waller
K N Waller Quicken Windows Subscription Member ✭✭
edited October 2023 in Investing (Windows)

Bond purchase from brokerage deducts the bond cost plus any accrued interest from cash balance. Then records the accrued interest separately and deducts again from the cash balance. I have to adjust each transaction to avoid the duplicate accounting and also corrects the bond value/Price.

Example: Buy $1,000 bond at par with $100 accrued interest. Quicken records:

DR- Bonds $1,100 CR- Cash

DR- Misc Exp ("Accrued Int") CR- Cash

Then I have to correct the bond entry to record the net bond cost.

Is this peculiar to the brokerage (JPM) or a Quicken bug in the download?

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Answers

  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited September 2023

    I don't have an answer to your question, but I edited the title to show the issue

    QWin Premier subscription
  • q_lurker
    q_lurker Quicken Windows Subscription SuperUser ✭✭✭✭✭

    I suggest as a test you manually enter the same purchase. My version of that would be

    image.png

    That produces two entries in the transactions list as:

    image.png

    (ignore the -647 and -747 cash balance values.)

    After that entry, an edit of the Bought transactions for the the bond shows as below since the accrued interest payment has been moved to a separate transaction.

    image.png

    Fundamentally, that all appears correct to me. If JPM is producing something else, you may need to edit accordingly.

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭

    It looks like JPM uses Web Connect for downloading which, as I understand it, comes to you as a QFX file. I'd think that you'd be able to look inside that file and see what JPM is sending you.

  • K N Waller
    K N Waller Quicken Windows Subscription Member ✭✭
    https://community.quicken.com/discussion/comment/20382148#Comment_20382148

    Thanks for your response. What you show is exactly what happens and that is how I correct it. My real question is why is it initially recorded that way?

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭

    I understood your question and assumed that it was recorded using the downloaded file. I suggested that you look into that file to see if that's actually what JPM sends you. If they send the correct information, properly formatted, but it gets recorded incorrectly in Quicken then the answer to your question would be "it looks like a Quicken bug." But if you determine that JPM is sending exactly what you're seeing in Quicken then the answer to your question is "JPM is sending you bad information."

    Depending on the answer you now know which entity you need to talk to.

This discussion has been closed.

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