Processing Dividend Reinvestment in Reckon Personal Range

Legacy KB ID: 4335

Question

How do I process Dividend Reinvestment in Reckon Personal Range?

Answer

Previous editions of Quicken did not handle dividend reinvestment properly, resulting in shareholdings have a fractional amount that was inconsistent with actual events. 

Knowledgebase Articles 2810, 3137, 3781 and 4044 dealt with ways of handling the left-over cash after a whole number of shares were purchased from the dividend income. 

To process Dividend Reinvestment in Reckon Personal Range.

 

Changes to the Reinvest – Income Reinvested transaction type

·         Cash Brought Fwd: - this is the amount held over from the previous dividend payment, the difference between the amount of the dividend and the whole number of shares that could be bought with the dividend amount.

·         Total: - the total of the amount held over from the previous dividend distribution and the current distribution.

·         Price per share: - the cost per share of shares being bought with this dividend reinvestment

·         Cash Carried Fwd: - this is the amount left over after the maximum number of whole shares have been bought.  This amount will be used with the next dividend distribution

·         Shares Issued: - the number of whole shares purchased with the total amount available on this dividend distribution.

All this information is included on your Dividend Statement. 

 

The process of entering a Reinvest – Income Reinvested transaction

1.    Enter the amount of the cash held by the company from the previous dividend distribution in the Cash Brought Fwd box.  This amount is quoted on your dividend statement;

2.    Enter other dividend information for this distribution.  When completed the Total will show the total amount available for reinvestment;

3.    Enter the price per share for reinvestment as quoted on your dividend statement;

4.    The amount of cash left-over will appear in the Cash Carried Fwd box;

5.    The number of shares issued will appear in the Shares Issued box.  This information should also appear on your dividend statement. 

You will notice that the Cash Balance in the bottom right of the Transactions Register will increase by the amount of the cash left-over by this dividend redistribution.

 

Continuity with a previous method.

You probably developed your own method for processing your dividend reinvestments that may have required the use of other accounts, such as:

·         A Cash Account in your Brokerage Account

·         A special account under Property & Debt

Or you just left the cash in the Brokerage Cash Balance.

 

If you left the left-over cash in the Brokerage Account's Cash Balance, then you have nothing more to do.  You are fully integrated with the new method. 

 

If you have the leftover amount in another account, then you will need to transfer the amount into the Brokerage Cash Balance.  The correct type of transaction will depend on where the left-over money is. 

 

Transferring from an Account to your Brokerage Account’s Cash Balance. 

1.    In the Transaction Register of your Brokerage Account, click on Enter Transaction;

2.    In Enter transaction select Cash Transferred into Account;

3.    In Transfer Account, select the account that is holding your left-overs;

4.    Enter a memo and description;

5.    Enter the amount to transfer;

6.    Click enter/Done to complete.

You will notice that the Cash Balance will increase by the amount of the transfer.  Your left-overs are now in the Brokerage Account’s Cash Balance. 

 

You may want to maintain a separate account for your left-overs for easy reference to amounts outstanding for each share.  After processing your Dividend Reinvestment:

1.    In the Transaction Register of your Brokerage Account, click on Enter Transaction;

2.    In Enter transaction select Cash Transferred out of Account;

3.    In Transfer Account, select the account you wish to hold your left-overs;

4.    Enter a memo and description;

5.    Enter the amount to transfer;

6.    Click enter/Done to complete.

Your left-overs will now be in your designated account.  The Brokerage Account’s Cash Balance will decrease by the amount of the transfer. 


Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/reckonaccounts

Or Log a Support Ticket: https://www.reckon.com/au/support/

 




How did we do?

Investment Accounts no longer added to List in alphabetical order

Tick in Red Circle in 2nd column of Split Transaction Screen

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Incorrect Cash Balance in Investment Account after processing a Dividend Reinvestment in Reckon Accounts
Processing the Westfield Restructure in Reckon Accounts Personal Range
Handling Dividend Reinvestment Plans (DRP)
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