Greetings,

I had Scottrade cut the check for a withdrawing member.
Then, I went to bivio and did the member withdrawal. Now,
our account on bivio has an unassigned debit (the amount of
the check for the member from Scottrade) and the amount is
debited for when I withdrew the member. In other words, I
have the transaction twice. Once for the unassigned debit
and again when I withdrew him.

Question: I can't assign the unassigned debit to the
withdrawn member because he is not listed because I already
withdrew him. Can I delete my withdraw of this member and
then assign that debit to the withdrawn member? (it gives me
that option, but the member is not showing in our member
list, because, like an idiot, I already withdrew him). If I
delete my withdraw of him, will he then show in the list of
members so that I can assign my unassigned debit?

It sounds confusing here, but I know that the regular
responders will have the answer.

Thanks in advance!

Johnny

Johnny wrote:
> Greetings,
>
> I had Scottrade cut the check for a withdrawing member.
> Then, I went to bivio and did the member withdrawal. Now,
> our account on bivio has an unassigned debit (the amount of
> the check for the member from Scottrade) and the amount is
> debited for when I withdrew the member. In other words, I
> have the transaction twice. Once for the unassigned debit
> and again when I withdrew him.
>
> Question: I can't assign the unassigned debit to the
> withdrawn member because he is not listed because I already
> withdrew him. Can I delete my withdraw of this member and
> then assign that debit to the withdrawn member? (it gives me
> that option, but the member is not showing in our member
> list, because, like an idiot, I already withdrew him). If I
> delete my withdraw of him, will he then show in the list of
> members so that I can assign my unassigned debit?
>
> It sounds confusing here, but I know that the regular
> responders will have the answer.
>
> Thanks in advance!
>
> Johnny

Yes, you can delete the withdrawal report and enter it again
(my recommendation would be that you make a copy before
deleting so that you can be certain that you use the same
valuation date and other information is the same).

Then follow this procedure to close out the account of a
withdrawing member.

To do this you need another account in bivio -- one called
'Member Withdrawal' or a similar name.

Next generate a Withdrawal report for the withdrawing
member. Go to Accounting, Members, and click on the
Withdraw button. Select the member name and complete the
form. Use the valuation date specified by your Partnership
Agreement. Use the member withdrawal account that you set
up as 'The account used to fund the cash portion of the
withdrawal'. If you assess a fee when a member withdraws
enter that fee where prompted.

When the withdrawal report is complete, there will be a
negative value in the Withdrawal account -- which is
logical, because the funds used to pay off the member are no
longer assets of the club even though the cash is still in a
club account.

When the payoff check is cashed, enter a TRANSFER
transaction to move the money from the check account to the
Withdrawal account to zero out that account.

Thanks for using bivio

Dave Swierenga
bivio support

David,

Thanks for your help, however we used the broker, Scottrade,
to cut the check out of cash that was in the account and not
invested (we didn't have to sell anything to pay the member
off). Since I already withdrew the member by going to
Members, then Withdraw, do I still need to open a second
account with bivio labeled "Member Withdraw". I am just a
wee bit confused.

Thanks for your patience.

Johnny

David Swierenga wrote:
> Johnny wrote:
> > Greetings,
> >
> > I had Scottrade cut the check for a withdrawing member.
> > Then, I went to bivio and did the member withdrawal. Now,
> > our account on bivio has an unassigned debit (the amount of
> > the check for the member from Scottrade) and the amount is
> > debited for when I withdrew the member. In other words, I
> > have the transaction twice. Once for the unassigned debit
> > and again when I withdrew him.
> >
> > Question: I can't assign the unassigned debit to the
> > withdrawn member because he is not listed because I already
> > withdrew him. Can I delete my withdraw of this member and
> > then assign that debit to the withdrawn member? (it gives me
> > that option, but the member is not showing in our member
> > list, because, like an idiot, I already withdrew him). If I
> > delete my withdraw of him, will he then show in the list of
> > members so that I can assign my unassigned debit?
> >
> > It sounds confusing here, but I know that the regular
> > responders will have the answer.
> >
> > Thanks in advance!
> >
> > Johnny
>
> Yes, you can delete the withdrawal report and enter it again
> (my recommendation would be that you make a copy before
> deleting so that you can be certain that you use the same
> valuation date and other information is the same).
>
> Then follow this procedure to close out the account of a
> withdrawing member.
>
> To do this you need another account in bivio -- one called
> 'Member Withdrawal' or a similar name.
>
> Next generate a Withdrawal report for the withdrawing
> member. Go to Accounting, Members, and click on the
> Withdraw button. Select the member name and complete the
> form. Use the valuation date specified by your Partnership
> Agreement. Use the member withdrawal account that you set
> up as 'The account used to fund the cash portion of the
> withdrawal'. If you assess a fee when a member withdraws
> enter that fee where prompted.
>
> When the withdrawal report is complete, there will be a
> negative value in the Withdrawal account -- which is
> logical, because the funds used to pay off the member are no
> longer assets of the club even though the cash is still in a
> club account.
>
> When the payoff check is cashed, enter a TRANSFER
> transaction to move the money from the check account to the
> Withdrawal account to zero out that account.
>
> Thanks for using bivio
>
> Dave Swierenga
> bivio support

> David,
>
> Thanks for your help, however we used the broker, Scottrade,
> to cut the check out of cash that was in the account and not
> invested (we didn't have to sell anything to pay the member
> off). Since I already withdrew the member by going to
> Members, then Withdraw, do I still need to open a second
> account with bivio labeled "Member Withdraw". I am just a
> wee bit confused.
>
Sorry for the confusion. You are correct by saying that you
cut a check from Scottrade to pay this member. The problem
that you are finding is that the withdrawal check is
outstanding until the check is cashed -- and when the check
is finally cashed you cannot account for it. Using a Member
Withdraw account for withdrawal funds will solve this
problem.

Since you cannot edit a withdrawal report my suggestion is
to delete the withdrawal report for that member and start
over with a new withdrawal.. This time, when completing
the withdrawal report, when prompted for the account to pay
the withdrawal, select the new Member Withdrawal account
(not Scottrade). (The check is still cut on Scottrade and
that is OK)

When the withdrawal check is cashed, make a TRANSFER from
Scottrade to the withdrawal account to document that the
check was cashed. If you use this procedure your Scottrade
cash balance will always be correct.

I hope that this helps.

Dave Swierenga
bivio support
>
> David Swierenga wrote:
> > Johnny wrote:
> > > Greetings,
> > >
> > > I had Scottrade cut the check for a withdrawing member.
> > > Then, I went to bivio and did the member withdrawal. Now,
> > > our account on bivio has an unassigned debit (the amount of
> > > the check for the member from Scottrade) and the amount is
> > > debited for when I withdrew the member. In other words, I
> > > have the transaction twice. Once for the unassigned debit
> > > and again when I withdrew him.
> > >
> > > Question: I can't assign the unassigned debit to the
> > > withdrawn member because he is not listed because I already
> > > withdrew him. Can I delete my withdraw of this member and
> > > then assign that debit to the withdrawn member? (it gives me
> > > that option, but the member is not showing in our member
> > > list, because, like an idiot, I already withdrew him). If I
> > > delete my withdraw of him, will he then show in the list of
> > > members so that I can assign my unassigned debit?
> > >
> > > It sounds confusing here, but I know that the regular
> > > responders will have the answer.
> > >
> > > Thanks in advance!
> > >
> > > Johnny
> >
> > Yes, you can delete the withdrawal report and enter it again
> > (my recommendation would be that you make a copy before
> > deleting so that you can be certain that you use the same
> > valuation date and other information is the same).
> >
> > Then follow this procedure to close out the account of a
> > withdrawing member.
> >
> > To do this you need another account in bivio -- one called
> > 'Member Withdrawal' or a similar name.
> >
> > Next generate a Withdrawal report for the withdrawing
> > member. Go to Accounting, Members, and click on the
> > Withdraw button. Select the member name and complete the
> > form. Use the valuation date specified by your Partnership
> > Agreement. Use the member withdrawal account that you set
> > up as 'The account used to fund the cash portion of the
> > withdrawal'. If you assess a fee when a member withdraws
> > enter that fee where prompted.
> >
> > When the withdrawal report is complete, there will be a
> > negative value in the Withdrawal account -- which is
> > logical, because the funds used to pay off the member are no
> > longer assets of the club even though the cash is still in a
> > club account.
> >
> > When the payoff check is cashed, enter a TRANSFER
> > transaction to move the money from the check account to the
> > Withdrawal account to zero out that account.
> >
> > Thanks for using bivio
> >
> > Dave Swierenga
> > bivio support

All this talk about withdrawals reminds me of another
question.

When a member withdraws and is paid with transferred stock
they realize a gain/loss on that stock only when they sell
the stock (not when they receive it). How does the
withdrawn member determine whether the gain/loss is
long-term or short-term?

In other words, when does their holding period in that stock
begin? I have a dim recollection that it begins on the date
the member made their first investment in the club (not the
date they received the stock), but I'd like to confirm that.

Is there a clear reference in an IRS pub addressing this?

-Jim Thomas