Beginner's question on member's payments & DRIP's
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Beginner's question on member's payments & DRIP's
Melissa asked some very good questions.... When a member sends in her check, I enter it with the next due date, but does it go into the 'bank' account? We deposit into the bank before we send off to drip accounts. If the check, received as a member payment, is physically deposited into the bank account, it should be entered as such in your accounting records. If it is physically deposited into the broker account, then it should be entered as such in your accounting records. You always want your bank and broker balances to match your accounting records. Then, when I write the check and mail it, do I not enter anything until we get the statement showing the transaction date? I'm thinking that I transfer monies from bank to suspense. Yes, exactly. That way your bank account balance is always accurate. The money is held in suspense until you receive your Dividend Reinvestment plan (DRIP) statement. And then when we have the transaction info, we transfer from suspense to the cost of the purchase. In this case, it is not entered as a transfer. It is a security "BUY" transaction. When you enter the purchase for your DRIP, simply select the suspense account as the source of the funds used to pay for the stock. Thanks for using bivio! Jerry Dressel St.Louis, Missouri Trez_Talk@bivio.com |
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