mutual fund check + checking acct deposit

"ps56k" wrote in news:jr5rf9$ska$ snipped-for-privacy@dont-email.me:

I believe this is very much like so many sets of transactions that involve a time lag. Action 1: Sell an asset (your "all shares of a TRowe mutual fund") Action 2: Convert the proceeds into a negotiable instrument (your check, which takes time to reach you) Action 3: Deposit the check into a checking account (subject to clearing)

In Quicking you can take each of the 3 actions above:

The sale of "all shares of a TRowe mutual fund" results in the acquiring of an "asset" (the check) that could be handled as an exchange into a temporary asset account in Quicken. When you deposit the check, it is an exchange between the temporary asset account and your regular checking account. That formalizes the time lag and the handling of the check.

Or you could make the TRowe transaction a SellX into the checking account, and make a comment that there was a delay because of the intervening check.

Your choice.

Hi, ps56k.

Old auditors will die someday, but they seldom lose their balance. ;^}

I would take the long way, recording what happens In The Real World, step by step:

1. Sell shares, letting proceeds increase the cash balance in the Rowe account.
2. Transfer cash from Rowe to Undeposited Checks (or some other Asset Account; the name doesn't really matter).
3. Deposit check into Checking Account, clearing Undeposited Checks.

Of course, steps 2 and 3 could be combined:

1. Deposit check into Checking Account, crediting (and clearing) Rowe account.

Combining steps 1 and 3 SHOULD work, but might run afoul of Quicken's separation of Banking Accounts and Investment Accounts. So it's best to record the full sale transaction in the Investment Account, then transfer the proceeds to the Banking Account (including the Undeposited Checks or other transitional Banking Account, if it helps you to keep the money trail more visible). It is an extra step, of course, but it cuts down on future questions. ;^}

RC

-- R. C. White, CPA San Marcos, TX (Retired. No longer licensed to practice public accounting.) snipped-for-privacy@grandecom.net Microsoft Windows MVP (2002-2010) (Using Quicken 2012 Deluxe R 5 and Windows Live Mail in Win7 x64)

This is one of those special cases that pops up, and has 3 parts to it -

#1 - Redeemed all shares of a TRowe mutual fund & requested check be mailed. When I did my usual download, Q2012 barfed on the TRowe acct, since it had 0 shares, but not "closed". I manually entered the transaction for Shares Sold - and linked the proceeds to our Checking Acct.

#2 - Deposited the check today - and waiting for it to clear and then download via Q2012.

#3 - I'm wondering if there will be any way to "match" the check deposit transaction with the check redeemed transaction - like with a bill paid & cleared in the check register, or I'll just get 2 transactions and double the amount - to be manually fixed ?

Shall be interesting to see what happens....

BTW - don't think I did anything, but when the deposited check cleared, it just popped up with the "c" for the existing Checking Acct entry that was created when I had that linked acct for the Shares Sold mutual fund transaction.