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Recording Cash Expenses

Questions about updating prices or transactions in Fund Manager

Postby adrianrees » Sun Jun 25, 2017 3:48 pm

Hello

My portfolio is for an Australian self-managed superannuation fund or SMSF. This is a trust that holds the investments on behalf of the beneficiaries.

The trust incurs expenses related to the fund assets e.g. insurance premiums for physical assets such as property. I want to record these not only to capture everything in one place as a record but also to ensure the default cash account reconciles.

I saw a 2007 post that said the easiest way to do this is to record a redemption for the default cash account for each payment. Just checking if this is still the best way to capture such transactions?

Thanks
adrianrees
 
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Postby Mark » Mon Jun 26, 2017 10:11 am

Hi adrianrees,

It depends if you want to consider these expenses for the portfolio, which would reduce performance, or just withdrawals to pay expenses outside the portfolio. If you want to include these expenses in your portfolio's returns, record them as Account Fees. If you do not want to include them in your returns, record them as Sell transactions of cash. Account Fees are just a distribution, but recorded with negative values for the shares/value. The price remains at 1. For example, if you have a $100 expense, record a Reinvested Distribution of type "Account Fee" and set the shares to -100 and the value to -$100, and the price at $1.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby adrianrees » Tue Jun 27, 2017 3:13 am

Thanks Mark.
adrianrees
 
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Joined: Sun Jun 25, 2017 3:26 pm


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