Hi guys,
I’m running a family office fund, and recently one family member transferred to me his securities to my account. How should I record these transactions? Is the function “Delivery (Inbound)” useful in this particular context?
Thanks in advance!
Best,
Hello, an inbound delivery is exactly the same as a purchase, only you do not need to have the associated cash available In a PP cash account.
Te purchase price of those securities will be set as those purchase/delivery, as if the previous on going profit/loss was reset.
Do you need to keep the existing profit loss information ?
Thank you for your prompt reply.
Please allow me to provide you with more detail to answer your question.
The securities that I will receive will be added to my original portfolio.
We intend to consider them as simply added like new cash to the original portfolio.
In other words, we want to preserve the original portfolio’s past performance – and regarding the new added securities, they simply enter as new cash (in the form of securities received) so that their performance from the moment of addition (starting from 0, neutral) combine with the original performance.
I hope I was clear ? Thank you in advance.
Best,