On Mon, 02 Oct 2006 22:50:39 -0500, Cal Learner-- MVP
<via_newsgroup[at]please.tnx> wrote:

- quote -

Just to let you know, I tried the Return of Capital method. The account
balances are correct. And the performance report shows the correct cost basis
for FDC.

However, the gains are calculated based on the Value as of Today and the
original purchase price at the beginning of the year. This leads to a huge
loss in the stock.

This incorrect calculation of the gain is apparent in both the portfolio
manager as well as the Performance by Investment Type Report.

I went back and let M2007 do it's spinoff thing. I noted, which you have
likely reported, that the Add Shares transaction includes a non-editable field
which transfers the cash out of the contribution account; the Remove Shares
transactions likewise has a non-editable field for transfer, but the amount
there is zero (and can't be changed).

So I added a deposit transaction to the Contributions register in the amount of
the Sum of the four AddShares transactions generated by the spinoff. I
assigned no Payee or Category to this transaction -- but did enter a memo.

The reports and balances now seem to be correct.

In the Performance Report, for FDC,

Buys = Original Buys plus the new basis amount
Sells = Original Buys amount
Basis = Buys - Sells
Gain = Value (today) - Basis + Income

So these computations appear correct.

Whew!

What a PITA.

There should be a MSKB article regarding this as well as the Net Worth Report
Bug.


--ron

In microsoft.public.money, Ron Rosenfeld wrote:

- quote -

I had found and reported it very recently.

Money 2006 had a problem doing spinoffs with a different problem,
but the AddShares problem is new to 2007.

- quote -

On Mon, 02 Oct 2006 22:50:39 -0500, Cal Learner-- MVP
<via_newsgroup[at]please.tnx> wrote:

- quote -

Oh Great. I wonder if it'll get fixed before 2015. Has this been confirmed as
a true bug? Do you know what version it appeared in?

So far, I've only seen one other true bug, plus one conflict with a program of
mine (which may or may not be a bug).


--ron

In microsoft.public.money, Ron Rosenfeld wrote:

- quote -

It's a bug in Money 2007. :-( You might work around it by adding a
corresponding payment to the cash account to compensate for the bug.
If not, there are other possibilities for workaround. One of those
is to get rid of the generated AddShares and RemoveShares
transaction, and doing a ReturnOfCapital of half of the basis. Then
enter an appropriately dated Buy using those funds. Make notes in
the comment field of the Details for the investments.

Anyone done a spin-off yet in M2007?

I just did one for FDC -- WU

I guessed at a 50% split since I don't have the data.

I had two purchases of FDC 1/3/06. I refer to them below as Quantity 1 and
Quantity 2

The distribution was one share of WU for every share of FDC.

For FDC, Money entered

Remove shares Quantity 1
Remove shares Quantity 2
Add Shares Quantity 1 with 50% cost of orig
Add Shares Quantity 1 with 50% cost of orig

For WU
Add Shares Quantity 1 with 50% cost of orig
Add Shares Quantity 2 with 50% cost of orig

The problem is that the cost of the Add Shares transactions was removed from
the associated cash account. So my cash account was suddenly short by that
amount. (No funds were added to the cash account with the Remove shares
transactions).

Clearly this is not a way of properly doing a spin-off!
--ron