Selling units to cover fees

G Griffiths's Avatar

G Griffiths

06 Dec, 2018 02:05 PM

On one of my investments units are sold each moth to cover management fees. I can post the transaction as a sale and set the investment fee to the same amount so there is no increase in my cash balance, but in my income and expenditure report only the fee is recorded as an expense, and not the proceeds of the sale as income. Any way round this?

  1. 1 Posted by dwg on 06 Dec, 2018 07:49 PM

    dwg's Avatar

    I'm a fellow user.

    The sale of Units does not create an income, it replaces one asset (investment units) with another asset (cash) and then you are using an asset to pay an expense, hence why on an I&E report you only see the expense. This is standard accounting.

    If you really must show it as an income you need to create some more entries. Once way of doing this is to record the proceeds of the sale as going to a category, you might call it Investment Drawdown or something of the like, then you record another transaction for the same amount. with an income category something like Proceeds of Investment Sale. this creates the entries necessary to satisfy accounting rules and provide what you seem to be looking for.

  2. 2 Posted by ggnupend on 07 Dec, 2018 02:01 PM

    ggnupend's Avatar

    Sent from my iPad

  3. 3 Posted by ggnupend on 07 Dec, 2018 07:12 PM

    ggnupend's Avatar

    Dwg

    Thanks for the reply I’ll give it a try.

    G Griffiths

    Sent from my iPad

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