Stock distribution to all members
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Stock distribution to all members We had equal stock distribution to all members so I used partial withdrawal method. This worked well but it required to much work. Instead of selecting one member at a time and going through 9 steps for each member to record transfer why not have "select all" choice and be able to distribute in one cycle for all? Second problem: value of transfers was $802 each and so recorded in individual member history but the general transaction history shows only -$22. This caused a discrepancy of over $1000 between broker cash and Bivio cash balance. I have no idea how to reconcile this difference and could use some help. Thanks Val Val,
We need more information if we are to help you. First of
all, what are you trying to accomplish? I mean what is the reason for giving
each member some stock? Usually it is not a good idea to use stock in partial
withdrawals, because the effects on each member's basis in those stocks can be
very uneven.
Second problem: value of transfers was $802
each and so recorded in individual member history but the general transaction
history shows only -$22. This caused a discrepancy of over $1000 between broker
cash and Bivio cash balance. I have no idea how to reconcile this difference and
could use some help.
Value of transfers was $802 each. I assume
that this means the each member received stock worth $802. Is that right? What
do you mean the general transaction history showed only -$22. I need actual
figures for shares transferred, Club basis for those shares, and cash paid out
to each member. I don't see how there can be a discrepancy of $1000 between
broker cash and bivio cash balance. Didn't you enter the actual cash paid out
when you made the partial withdrawal? If so, there shouldn't be any discrepancy.
Rip West Saint Paul, MN Rip
Thank you for trying to help. I'm trying to
distribute (transfer) 50 shares of one Company valued @ $802 to each member to
keep value of member account below a particular level. This has been a
traditional practice for many years. By by-laws all members must have equal
share of Club assets. So partial withdrawal of 50 shares each should keep
members basis even but you seem to disagree. You said "Usually it is not
a good idea to use stock in partial withdrawals, because the effects on each
member's basis in those stocks can be very uneven."
Going through "partial withdrawal" steps 802 was
entered for each member. Accounting>Members>(Name)>transaction shows
"Jan 17, 2007, stock transaction date, partials withdrawal in cash/stock
(802) for individual member selected. Going to
Accounting>Accounts>transactions we find a list of "01/17/2007 (Exec name)
partial withdrawal in stock/cash (Member Names) (22) for each member. So our
cash account in Bivio was reduced by $22 for each member yet no cash was
withdrawn or transferred just 50 shares of stock.
I need to know how to correct $22 to $802 and
reconcile cash discrepancy between brokers statement and Bivio.
Don't know if this helps but I just went to
Accounting>Report>Transaction Ledger>Generate, does show under
description "Partial withdraw, (Name), 50.00 shares Fulton Financial, Cash -
(22), Investments - (744.28), Member - 766.28. Cash of $22 is consistent for
each member but Investments varies from 744.28 to 633.63. None of it adds up to
$802 value of stock on transfer date. Guess I need to learn more about
Transaction Ledger.
Val
Hi Val,
To clear up the mystery of the $22, let's do this. Go to
Accounting|Reports. Scroll down to the bottom of the page, where it says
Withdrawal reports. Click on that. Then click on one of the partial withdrawals
and tell me what it says.
I don't understand the need to 'keep value of member
account below a certain level', but maybe I don't have to.
So partial withdrawal of 50 shares each
should keep members basis even but you seem to disagree.
Well, it might or might not. If each member's 50 shares comes out of the same purchase block, the basis of those shares will be the same. Rip West Saint Paul, MN Rip, I think you're on to something. If I go to
Member Contribution and Withdrawal and generate report it shows me as (701.73)
and if I add fees paid in Jan of $100.27 then the total is correct,
$802.
If I go to Withdrawal Reports (didn't see it
before) I see Acquisition Date - 08/07/03, Price/Share - 15.60,Market Value -
780, Clubs Cost - 744.28, same for member. So Bivio uses date of purchase
value $780 and I used date of transfer shares value of $802 and here comes
$22. Does this mean one just can't have a partial withdrawal unless I find
market value of stock at date of purchase? Don't understand why one just
can't type in 50 shares and let the system determine cash value. Now that you
led me to understand $22 discrepancy how do I correct this without manually
entering over 250 entries for the Club.
It would be good if Bivio would have a detailed
description on partial withdrawals.
Wonder how the system would handle issuing actual
certificates as some members had requested.
Val
Joyce,
I still don't know what you are trying to accomplish or
why you are doing it, but I think I can eliminate the $22 problem. You printed
out a withdrawal report, right? You said....
So Bivio uses date of purchase value
$780 and I used date of transfer shares value of $802 and here comes
$22.
No that is NOT the market value as of the purchase date.
That is the market value as of the transfer valuation date that you used in
entering the partial withdrawal. There was a box for that date, in which you
entered a date, and bivio used that to get the fair market value of the
transferred stock. Seems to me the simplest thing would be to delete all those
partials, and reenter them exactly as you did before, but put in a total amount
of $780 rather than $802. Then, each member will get the shares and your cash
will balance.
If you don't want to do that, you could write each member
a check for $22, and your cash will balance.
Rip West Saint Paul, MN Hi Rip
You are correct, I rechecked and I used previous
days close of 16.04 instead of transaction day close of 15.60. You're good,
thank you for your help.
Club has been distributing shares for over 40 years
when NAV get to a certain point. I would rather have cash but I'm the new kid on
the block. It Looks like Bivio is not user friendly toward this approach.
Say hello to Joyce.
Val
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