Dividend Reinvestment

[AIM]

Hi Mark,
I'd like to know if a dividend re-investment transaction is appearing correctly. How should a dividend reinvestment appear in the Data Register?
The investment that had the dividend shows a distribution type of Dividend and also on the same day another distribution type of Dividend Reinvestment (same $ amount).
The cash investment shows two entries on that date, the purchase (Imported distributed dividend) and redemption (CASH JOURNAL from stock XYZ).

The dividend reinvestment transaction was done manually in the portfolio editor.
At first I didn't have the distributed dividend, just the re-invested dividend but it didn't reconcile as the correct amount of cash. Now with the additional dividend distribution it reconciles , although it looks as though there were two dividends on that date. I just want to make sure it's recorded accurately for performance.
Thank you.

[Mark]

Hi AIM,

In the investment that paid the dividend, a reinvestment should either be recorded as a single reinvested dividend, or as a distributed dividend and also a purchase for the same value. They are equivalent, but it is cleaner to just have it recorded as a single reinvested dividend (blue sideways U turn looking icon in the Data Register).

For the cash side, since it was reinvested, there should be no cash entries at all. If it has both a buy of cash for receiving the dividend, and a sell of cash for re-purchasing more shares this is fine, but not necessary. The easiest way to record it is a single reinvested dividend, and no cash entries.

It sounds like you have it recorded twice, once as a reinvested dividend, and again as a distributed dividend. You only want the one, the reinvested dividend.

[AIM]

Yes, that fixed it. The double entry was suspicious.
The transactions import from Optionshouse as:
Transfer in of shares in XYZ
Distributed Dividend of $ for XYZ
Redemption in cash account

So all these need to be ignored and just manually create the re-invested dividend entry manually so that there are no extra entries in the cash account?

Thanks.

[Mark]

Hi AIM,

Great. Yes, it sounds like you would be better off just manually recording a reinvestment given these retrieved transactions for a reinvestment.