Quicken and money market fund reconciliation

Using QH&B 2008. Consolidated two brokerage accounts this year and for a long time suspected my MMKT fund in Quicken was incorrect (my problem.. I was trying to hard to make everything perfect and
accomplished just the reverse). I download my day to day transactions fine but during the time of consolidation, I entered a few transfers betweent the two accounts manually.
The feature (online) that compares your Quicken records to your brokerage balances has never complained, but I finally had time to dig deeper and manually compared my statement balances (and the brokerage site's balance) to Quicken. They were definitely off by around $50K or so. Not finding anything obvious in the Quicken records and trying to not be so compulsive, I decided to just reconcile the money market fund in Quicken to the value at the end of August. Quicken put in an adjusting entry and everything matches my statements. The date is incorrect because I know the mistake happened early in the year but at least I have the correct #s.
I then used the holdings comparison feature again. And Quicken STILL is happy! I'm not asking what caused the discrepancy-- I'm sure I'm responsible-- but I don't understand how Quicken could be happy with a) balances that were that far apart from the brokerage AND b) be just as happy once its own balance has been adjusted to match. Any ideas?
jo
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jo wrote:

Nothing jumps out at me.
What kind of "adjusting entry" did Quicken enter?
--

John Pollard



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A "Balance Adj: Misc" Deposit transaction. representing the difference between my records and the brokerage records. The latter are correct.
jo
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jo wrote:

Ahhh. I was thinking you were holding shares of the Money Market fund.
If you take a look at the Holdings tab for the account in the Online Center, you probably won't see any indication of the amount of "cash" you are "holding". I don't believe Quicken makes any attempt to compare your "cash" holdings between the fi and Quicken (I don't think the fi even downloads cash "holdings" ... mine don't).
If you were holding shares of a Money Market fund (instead of a linked checking account), I believe Quicken would have told you when your Quicken MM fund share balance was different from your downloaded MM fund share balance.
--

John Pollard



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Looks like you're right. The cash amount is shown on the balances screen but not on the holdings. What are the nuances or downside to using the cash amount to purchase equivalent shares of the Money Market Fund? Can I still write checks against it in Quicken if I do this? I don't do this often but it does happen.
jo
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jo wrote:

You can write checks in Quicken investment accounts.
If your real-world cash was swept into and out of a MM fund, you would have to sell shares of the MM fund (in Quicken) to create enough cash for the check(s). That's what happens at the fi.
And you'd probably have to buy and sell shares of the MM fund when you sold or bought shares of other securities. Also probably what happens at the fi.
It doesn't sound like your fi downloads those mm fund buys and sells.
Perhaps at one point you told Quicken to show your mm fund holdings as cash; an option which some financial institutions offer and some do not.
--

John Pollard



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jo wrote:

You can write checks in Quicken investment accounts.
If your real-world cash was swept into and out of a MM fund, you would have to sell shares of the MM fund (in Quicken) to create enough cash for the check(s). That's what happens at the fi.
And you'd probably have to buy and sell shares of the MM fund when you sold or bought shares of other securities. Also probably what happens at the fi.
It doesn't sound like your fi downloads those mm fund buys and sells.
Perhaps at one point you told Quicken to show your mm fund holdings as cash; an option which some financial institutions offer and some do not.
--

John Pollard



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Everything you have written is something I've either experimented with or experienced over time with Quicken so it doesn't sound too difficult as long as I want to go thru mirroring what the brokerage is doing. I think at some point I was sick of that and configured it to showing the mm funds as cash. At the time I didn;t like that option because I couldn't figure out how to assign an interest rate to the funds, but it was easier than entering all the reinvestments.
On a related topic, since I know the mistake happened earlier in the year, but I reconciled to an end-of -august date, is there a way I can go back to earlier periods prior to the mistake (if I can identify one) and rereconcile? I seem to remember there was a way to get earlier reconciliations to show up in a list and allowing you to repeat/correct them. It's a bit compulsive but I'd like to know how I created such a gigantic error.
Thanks as always,
jo
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jo wrote:

I believe you're thinking of "Smart Reconcile", which existed back at least as late as Q2002, but disappeared sometime after that. Smart reconcile kept track of individual reconciles by date and allowed you to undo selected reconciles and redo them.
Things are different now; though I can't always remember the specifics. I'm pretty certain you can no longer see, or work with, individual previous reconciles. But you can still re-reconcile; it's just that the devil is in the details.
If your current reconcile "opening balance" is correct (it's the net amount of all reconciled transactions), a re-reconcile might be as simple as changing the date on the balancing transaction you (or Quicken) added. Or deleting the balancing transaction, then adding or deleting transactions that totalled the same amount as the one you deleted. Making sure that you marked any "new" transactions as "reconciled" ("R" in "Clr").
If that doesn't work; I have always been able to re-reconcile by changing the Cleared Status of all reconciled transactions from the most current back thru the oldest "statement" that I wanted re-reconciled; then doing a single reconcile of all the transactions thru the end of the most current statement. To un-reconcile: you can use Find/Replace to change the Cleared Status to "c", or you can select the transactions in the register and click Edit > Transaction > Reconcile > Cleared.
You can experiment; just make a backup (or two) before you start.
--

John Pollard



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think I'll print this one off for careful study<g>. It's not something I want to undertake lightly. Smart Reconcile does sound like what I was talking about. Wonder why they pulled it.
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Is the MMKT held in a Quicken brokerage account, or in a separate "linked" account?
If it's within the brokerage account, is it reflected as a "cash balance" or as its own security?
If it's a security, have you checked the share price, to make sure that it's a constant $1?
While you're at it, have you checked the share prices for the other securities that you hold?
db
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It's a linked checking account for the brokerage account, not it's own security. It is reflected as cash. All my security prices appear accurate.
jo
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