Hello everyone. First of all, thanks to the developers for providing such an impressive program.
I have investments in stocks with the same bank as I have the cash account. Therefore, each purchase or sale is automatically linked to the account.
I have manually loaded all (many) historical purchase and sale operations from 2015 until now. But do not charge the cash debit operations, believing that you would be able to solve it with the same accounts!
Now I find that the metrics, values and graphs do not reflect the real values.
Can I accommodate it in some other way without having to charge all those cash debits and credits transaction by transaction?
There are other apps that have something like âAuto add cash operationsâ.
you could work with delivery inbound. In this case the account doesnât count.
You can give this a try. But make a copy of your file upfront, just to be on the save side.
Afterwards in the copied file â Accounts â All Transaction -->mark the corresponding transactions (Multi selection with shift + mouse click) than right click â convert to inbound delivery.
The same applies in case youâve sellings:
EDIT: Keep an eye on the top right corner filter icon â makes your life easier.
It worked perfect! Your solution is very simple.
The numbers of results, graphs and other analyzes are now correct.
What does âConvert to inbound deliveryâ mean? To understand what I did, and understand everything better. Or where in the help manual it explains what it is.
Thank you so much. I hope it is also useful to someone else.
A Delivery (Inbound/Outbound) transaction resembles a Buy/Sell transaction, except that there is NO deposit or withdrawal from a deposit account involved. In a Delivery Outbound transaction, the securities simply disappear and are no longer visible in the securities account. In contrast, with an inbound delivery, itâs as if the securities are acquired by magic, without any prior cash transaction.
Iâd like this explanation in the context of how PP calculations are done with less emphasis on magic. As I understand it PP uses the double entry accounting Principle of Balance to calculate performance of the overall financial situation whether the money be in cash or securities. To simplify the accounting PP uses Security account Delivery (Inbound-Outbound) and Cash account Transfer (Inbound-Outbound)⌠(Maybe an accountant could add the term for this magic.)
This scenario could occur, for instance, when inheriting securities (you got the stock âfor freeâ).
Will this record the inherited cost base for tax purposes (which realistically is your actual cost)?
@flywire Thanks for the suggestions. Indeed, âmagicâ isnât probably the right word to use in the context of âportfolio performanceâ. Iâve tried to update the text a bit. Could you take a look? Feel free to comment or correct through github.
I donât quite understand what you mean by âsimplify the accountingâ and âCash account Transfer (Inbound-Outbound)â. Do you mean deposit/removal?
The tax handling in PP is also still very confusing to me. For example, taxes are included in the performance calculation on portfolio level but not on security level. Why? Still no idea
I could use a âsounding boardâ regarding my writing about the more economic/financial topics. For example, Iâm not 100% sure about the correctness of my explanation regarding IRR and TTWROR. Also, itâs not clear to me why taxes and fees are included in the performance calculation at the portfolio level, but apparently only fees at the securities level. I
Is a PM or e-mail function possible on this forum? That would probably be a bit easier to communicate.
I donât think there is a PM function. There may be an email function. Perhaps @Thomas can say something about this.
At the suggestion of @Sn1kk3r5 he, @Jo92 and @Performer have formed a â team to support your work. I think it is better that you open a separate thread with this group to discuss documentation issues instead of doing this via email.
That way you can probably acquire more knowledge from the users. Where I can make a contribution, I will be happy to do so.
There is an accounting basis concept here. Funds transfer between the cash and security accounts but the delivery operates just on the security account. Deposit/removal concept seems related too. What is the accounting behind this allowing PP to correctly report performance?
In anticipation of a special thread on such questions, here is a brief explanation:
Purchases lead to postings to accounts that reduce the cash position and increase the securities position. If no account is held for the security, a deposit can be used instead of a purchase. A purchase can subsequently be converted into a deposit and vice versa. This also applies to sales and deliveries. The booking type can also be changed under All securities.
