I believe the problem is the buy transaction at zero cost (sell at zero cost also has the same result) . It has been found that these types and transactions and lot matching are not compatible. I think what happens is that Moneydance finds such a transaction and it has no lot information for it and because they are buy or sell transactions there should be lot information. The basic trouble is that there is no other way to add/delete shares to resolve things like fractional shares.
If you need to use zero cost transactions to adjust the number of shares I believe the only way it works without problem is to set the shares to Average cost.
Thanks! I believe the problem started happening before I did my first buy at zero cost, but I can do some experiments.
Zero is a legitimate cost basis, though. I acquired shares that I didn't pay for, and so zero is the correct basis. If I make up something to keep Match Lots happy, I'll have the wrong basis when I go to sell.
I agree completely that there should be a way to adjust the number of shares, but that's not what I'm hitting here.
Most of the times I see this question is to adjust the number of shares after something like a stock split, hence my assumption. Your case though is much the same thing as far as what needs to happen just with a whole number of shares rather than fractional.
There are a number of key actions that are missing within Moneydance, the really important ones I believe number less than 6, this I think is one of them.
I have had a thought on receiving shares that you didn't pay for.
In many countries this is considered a gift which is fine as gifts are not taxed but when you come to sell if the shares are entered at zero cost then the capital gains report will show the total proceeds as a gain which is most definitely not what you want.
The shares would normally be deemed to be worth the market value when you were given them and this would be the cost basis, so the capital gains report would reflect the difference as the gain and that would feed into your taxes.
So I do not think you want to enter the initial holding at zero cost but do a buy transaction at the current market price. The funds for this I would either draw from an income category I set up for the cash value of the "Gift" or adjust the initial balance of the investment account to account for the funds. This I believe would give the appropriate cost basis moving forward.
Doing it this way means you could also return to lot matching if so desired.