Stock transaction manual (new features of version 4.0
Contents
1. Introduction Version 4 0 of WhereDidAlIMyMoneyGo adds a new screen that groups most if not all functionality related to stock transactions in one window This document describes that window and how to use it It has the following chapters Introduction You are reading this Some theory How WDAMMG handles and stores share Preferences An overview of the new preferences you can set and what they are used for The portfolio window Description How does this window look and what is the meaning of the different element on this window Possible Actions Things you can do on this window As the portfolio module of WOAMMG was still under development when this document was written some screens may be a little different than shown in this document some spelling errors were corrected and the quantity of shares on hand was added to the portfolio table Apologies for that Bert Torfs March 2004 2 Some Theory An account is an object that can hold value That value is expressed in a currency Accounts can be yours your bank account your wallet or someone else s A transaction is the registration of a transfer of value from one account into another Any such transfer has a reason which is indicated by an expense type reason codes were a better name So a transaction records the transfer of value from one account to another for a given reason expense type Buying a bottle of wine could be registered as a transaction fr2. Fluctuations KBC 688 00 0 5532 2 1 2004 Buy KBC 3 700 00 100 5518 The upper left part of this window the list is a table that lists all the shares you defined Upper right shows the details of the share you selected in the list The lower part of this window contains two tables and a graph with information on what you did with the selected share Confused Lets explain 4 1 The list The list lists all shares you defined If you open an existing WDAMMG file that was created with an older version all currencies of type share will appear automatically The reverse is also true any share you create with this dialog will appear in the currency window as a currency of type Share The list table contains the following columns Symbol The symbol of the share The symbol can be 4 characters long Qty The number of shares of this type you have in your portfolio Rate The rate at witch the share is currently rated in your file Btto The brutto profit or loss for the share This will be zero unless you bought some of these shares Brutto profit is without calculating the money you spend to buy or sell shares like commissions The brutto taxes are calculated as All the money in local currency you got when you sold shares of the selected type Plus the current value of the shares you still have Minus the money you paid for the shares Btto Percentage you won lost because of buying this share This per
3. default Own Property account as set in the file preferences dialogue If you change this account that change will be remembered for the selected share For Enter the expense type for dividends received This field defaults to whatever you entered in the file preferences If you choose another expense type that change will be remembered for the selected share Taxes paid to If you pay taxes enter a profit and loss account to which the taxes are paid The default tax account for portfolio profits can be set in the files preferences dialogue If you change this account that change will be remembered for the selected share Expense type for taxes If you pay taxes enter an expense type representing taxes on stock transactions The default expense type for these taxes can be set in the files preferences dialogue If you change this expense type that change will be remembered for the selected share Bert Torfs March 2004
4. shares you bought and the unit price at which you bought them This unit price is expressed in the currency in which the share is quoted That currency can be set on the main Stock Portfolio window Account to pay from the own property account where the money you spent on your shares came from It will be initialized with your default own property account as set in the preferences Commission Paid The commission amount in your own currency Commissions Paid To Select a Profit and Loss account from the list The account shown initially can be set in the file preferences see further If you change this account on this dialogue that change will be remembered So the next time you buy a share of the same type the commission account will be initialized with the last used account Change Rate to Price If you check this item the share price will be changed before the transaction is registered If you uncheck this option the share price will be left untouched even if you bought the share at a different price As a consequence of this the transaction that will be generated will include a booking to register currency differences Comment Some optional free text max 255 characters Total Paid The amount you paid expressed in your home currency Normally this equals the number of shares multiplied with the unit price converted to your home currency plus the commission If the value of the share is expressed in a foreign currency
5. the calculated transaction amount might not be the same as the amount you actually paid because of currency differences the conversion factors as registered in your file will probably not mach the real conversion factors In that case you can change this value Any change you made will be booked as a currency difference The screenshot above shows an example of buying a share quoted in by someone who s home currency is EURO 4 4 4 Sell Share Pushing the Sell Share button will open the dialogue shown below The fields have the same meaning as in the Buy Shares dialogue The initial number of shares shown is the number of shares still left in your portfolio Enter Stock Transaction Sell AAPL Apple Computer Date 1 3 2004 Nr Of Shares 100 21 37 USD Destination of the money Bank Account Comission Payed OO 00 EUR Commission Payed To Citybank Change rate to price v Comment Total received 1 709 60 EUR Cancel 4 4 5 Register Dividend Some companies pay a dividend to their shareholders every year This dividend adds up to the result of your stock portfolio Please note that dividends in the current release of WDAMMG have to be entered in your own local currency Pushing the Register Dividend button will open the following dialogue Enter Stock Transaction Divident Received Date 1 3 2004 Total Divident 00 EUR Taxes 00 EUR Commen
6. because of share price fluctuations will be booked on that account If you do not set these account types all these accounts will be created on the top op the account hierarchy i e inside the Own Property and Profit and Loss types You can always relocate them yourself by dragging them into the type you want 4 The Portfolio Window So far for the theory Lets look at the new portfolio window now As stated earlier this window is derived from the currency window Anything you create with this window will also appear in the currency window Any Currency with type Share that you create with the currency window will show up in this window as well But you will not be able to use the Buy and Sell buttons with these shares unless you manually create the portfolio account Below is a screen dump of the new portfolio window 00e Stock Stock Details Symbol 41 Rate Btto Btto 27685 AAPL 21 37 00 d se COLR 81 00 167 50 4 N Short amp Full s ame Shor ull INT 21 16 00 kor KBC 46 32 932 00 25 TASES KBCB 1 075 00 900 00 7 moor EERO OMEP 31 00 370 00 13 Current Price KBC EUR Change Result Btto 932 00 EUR 25 19 Netto 898 00 EUR 24 27 Register Dividend Sell Buy SS gt 2 369 50 EUR 10 62 Transactions Rate History Portfolio Graph Bate 7 Description Local Amnt Nr Of Shares Id 27 2 2004 Currency Fluctuations KBC 244 00 0 5541 1 2 2004 Currency
7. centage is exclusive any costs that occurred because of buying selling like commissions and taxes 4 Net Same as Btto but this time commissions and taxes are taken into account The net profit is lower that the brutto profit Net The net profit as a percentage of the investments Below the list is the sum of the brutto profit or loss for all the shares in the list 4 2 The details To the right of the list is an area containing the details of the selected share That area contains the following Id a unique identifier This identifier is automatically assigned Name Short and Full The symbol and the name of the share Base Currency The currency into which the share is expressed Can be different that your home currency as you might want to track shares quoted on a foreign stock exchange Current price The current price of the share Share prices are modified exactly the same way as currency rates are modified Check the description of the currency dialog for more details Hint Press the change button Result The brutto and net result of the share These numbers are the same as the numbers present in the list 4 3 The tables Below the list and the details is an area with three tables two tables and a graph to be exact 4 3 1 Transactions This table lists all the transactions for the selected share These transactions include Buying Selling Rate Fluctuations Dividends The following i
8. count to a profit and loss account it registers an expense e g from your wallet to a shop If that value goes from one Own Property account to another own property account it registers a transfer e g from your bank account to your savings account As a consequence of this expense types or reason codes come in 3 flavors Those that describe a reason for an expense e g Fuel Those that describe a reason for an income e g Salary Those that describe a reason for a transfer e g Saving There is a fourth account type Assets But as accounts of that type are of no importance when dealing with shares they are ignored in this document Previous versions of WDAMMG already allowed you to define a shares a share was still is btw nothing but a special kind of foreign currency The only difference between an ordinary foreign currency and a share is that the value of a share can be expressed in another currency than your home currency while the conversion factor for foreign currencies is always expressed in terms of your own currency e g 100 foreign currency are worth 120 of my own currency Version 4 0 of WhereDidAlIMyMoneyGo adds a new window derived from the currency window that only lists shares currencies of type share If you create a new share using that new window not only a new share will be created but also two accounts One Own Property accounts that w
9. ill hold all the actual shares you will buy of the share you just created A Profit and Loss account that will act as the From or To account for all transactions that will be generated as a result of a fluctuation of the price of the share These accounts will be used whenever you buy or sell shares when you change the share price or when you register the reception of a dividend Besides the accounts that are created automatically with a share some more accounts will be used in share transactions These other accounts and expense types must be created manually Some new entries in the File Preferences window allow you to assign these accounts to be used in stock transactions So lets look at the File Preferences window first 3 Preferences There are costs involved when you buy or sell shares Even when you receive dividends you might have to pay taxes in some countries Costs involved with portfolio transactions are Taxes Money you must pay to your government for every transaction Commissions Money you pay to your stockbroker The accounts that will be used for these expenses can be set in the File gt Preferences For File dialogue a0 0A Preferences Commissions should be booked on Account Losses Unspecified Expense Type Expense Unspecified Taxes should be booked on Account Losses Unspecified Expense Type Expense Unspecified Account
10. nformation is provided for every transaction Date The transaction date Description A short description of the transaction Local Amount The transaction value in your own currency Buying results in negative values selling results in positive values Number of shares The number of shares involved This will be zero when the transaction describes a fluctuation of the share price or a dividend In case of a sale or a buy the number of shares sold or bought is listed Id Unique automatically assigned identifier If you double click a transaction in this table the transaction dialogue will open with the clicked transaction selected 4 3 2 Rate History The second table shows the historical share prices This table is the same as the one on the currency dialogue More info is provided in the user manual 4 3 3 Portfolio Graph The third tabpage contains a graph that lists the value of your shares of the selected stock over time This graph is the same as the one on the Bookings Per Account dialogue A description of the elements on that graph can be found in the user manual As told earlier WDAMMG associates an Own Property account to every share you define So you can use the Bookings per Account dialogue to look at a portfolio as well If you want to have information on a group of shares like all shares of a sector you can create account types for every group and drag the accounts that represent the po
11. om your wallet from account to the wine store to account for food and drink expense type Accounts and expense types can be created using the File gt Account amp Expensetype Hierarchy dialogue sorry for the name Suggestions are welcome Accounts can be grouped in account types Expense types can be grouped into master expense types Account types and master expense types are like hierarchical folders they can contain other account types and master expense types Accounts must be of one of the following types Own property the value on these accounts is yours Your own bank account and your wallet are two examples of these Debt and liabilities One day you have to pay back any value on these accounts The value on these accounts is subtracted from your total property Profit and loss the value on these accounts belongs to someone else Accounts of this type are like external sources or destinations of value Examples of such accounts are your employer your customers the shops you buy from etc The wine shop mentioned earlier is another example The value on these accounts does not influence your own property Transactions register the transfer of value usually money from one account to another If that transfer comes from a profit and loss account and goes into an own property account it registers an income e g from your customer to your wallet If that value goes from an own property ac
12. rtfolio or the profits and losses into these groups All existing reports will then follow your new structure 4 4 Possible Actions In the Portfolio Window 4 4 1 Creating Shares To create a share you can either Select Edit gt New Share from the menu Press Command K Push the little button below the list You then have to complete the details 4 4 2 Change the Share Price To change the current exchange rate just press the Change button next to the rate and complete the dialogue that opens Press Ok when you are done or Cancel if you do not want to change the rate All profits are losses caused by this change will be booked immediately Modify Currency Rate Conversion Factor 1 AAPL 21 37 Date for the adjustment transactions 4 3 2004 Cancel ok 4 4 3 Buy a share If you want to register the buy of a share select that share in the list and press the buy button The following dialogue will open Enter Stock Transaction Buy AAPL Apple Computer Date 4 3 2004 Nr Of Shares 100 21 37 USD Account to Pay From Bank Account Comission Payed 98 56 EUR Commission Payed To Citybank lf Change rate to price v Comment Some free comment Total Payed 1 733 16 EUR Cancel Eo The fields on this dialogue have the following meaning Date The transaction date When did you buy Nr Of Shares the number of
13. s must be created with the following type Portfolio Accounts Own Property Stock Fluctuation Accounts Profit and Loss Default Expense Types Stock Fluctuations Currency Fluctuations This dialogue does not allow you to create accounts or expense types You can only select items from the popup lists The accounts and expense types you want to assign in this dialogue should be created with the Setup gt Account amp Expensetype Hierarchy dialogue you can do this while the file preferences dialogue is open Below the title Commissions should be booked on you can select an account and an expense type onto which commissions will be booked whenever they occur Below the title Taxes should be booked on you can select an account and an expense type onto which taxes if they occur will be booked Next comes a group entitled Accounts must be created with the following type Here you can select the account types not accounts into which WDAMMG will place the accounts it will create whenever you create a share using the portfolio dialogue Indeed whenever you create a share using the Portfolio dialogue WDAMMG automatically creates two accounts A first Own Property account expressed in the share you just created This account will hold all the shares you buy A second Profit and Loss account expressed in your own currency Any profits or losses you encounter
14. t Dividend for AAPL From P amp L Account Resultaat AAPL To Own Property Accnt Bank Account IG For Expense Type l investment profits or losses Taxes Payed To Losses Unspecified Expense Type for Taxes Expense Unspecified The meaning of the different fields on this dialogue is the following Date The transaction date Total Dividend The total dividend received excluding any taxes or commissions If you pay taxes or commissions this amount is higher than what you actually get This amount is expressed in you local currency Foreign currency dividends are not yet supported Taxes if you have to pay taxes on dividends you receive enter the amount here The total revenue what will be transferred to your own account is the dividend minus the taxes Comment You might just leave it as it is unless you have more inspiration than me From Enter a profit and loss account from witch the dividend came The account proposed to you is the account that also holds any profit or loss related to share price fluctuations If you choose another account from the list that choice will be remembered You could create a profit and loss account for every company you buy shares from As it are these companies that pay the dividends this is the cleanest way of working But it might be overkill for most users To Enter a Own Property account onto which the dividend will be put This field defaults to your
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