Portfolio > Portfolio Reconciliation

The reconciliation makes a proposal how portfolio- transactions will be booked in the bank daybooks of the bookkeeping.

Existing journal entries

If, in the bookkeeping, journal entries exist on general ledger account Stock to reconcile, Mill7 tries to match this journal entry with a transaction on basis of an amount.

In the proposal, the concerning daybook page and line are displayed. When this transaction is processed, the general ledger account Stock to reconcile is replaced by account Stock or Interest (depending of the kind of transaction) in the journal entry.

New journal entries

Transactions that cannot be matched to an existing journal entry, a proposal is made. In this proposal a number of a new daybook page is suggested. Line remains empty.

For example, revaluations, results and other bank journals, booked in portfolio.

(Other bank journals are transactions, booked in portfolio, to close the balance of the bank. They have nothing to do with stock.)

Reverse reconciliation

Transactions that are reconciliated cannot be changed any more.

If a transaction is not correct it can be reversed.

By pressing the right mouse button in the transactions screen a mouse menu appears with the option "Reverse reconciliation". This option can also be started by pressing Ctrl+R.

Opposite journals will be booked for all totals concerning the transaction with the description "Reversal".

The transaction itself can be changed again after reversing the reconciliation.

When a buy is reversed all transactions related to this transaction will be reversed such as sales and revaluations.

When a transaction concerning an obligation is reversed also the interest will be reversed.

Results

In the portfolio module results are calculated in case of revaluation and sales.

These results are always in the currency of the bookkeeping. Because all the results are in bookkeeping-currency, journal entries are booked in a daybook Memo. It is not necessary (and not wished) to enter a different currency in journal entries, because in the portfolio-module the currency result is calculated.

After reconciliation transactions will get status booked and cannot be changed any more.

In Settings, general ledger accounts and daybooks can be set for reconciliation.

If no General ledger account has been entered in the settings at Realised result currency loss, the negative result on currency will be booked to the general ledger entered at Realised result currency gain.

If no General ledger account has been entered in the settings at Realised result stock loss, the negative result on stock will be booked to the general ledger entered at Realised result stock gain.

Different kinds of transactions can be reconciliated.

Every type of transaction results in certain journal entries.

Buy and opening balance

Buys and opening balances will be processed the same way.

In the concerning bank daybook, journal entries will be made on the general ledger account Stock.

Sale

On sales three kinds of journal entries are made.

1. In the concerning bank-daybook, journal entries are made on general ledger account Stock.

2. Unrealized results, because of revaluation, will be booked in Results daybook memo.

3. Realized results will be booked in Results daybook memo.

The sum of these results will be booked in account Stock.

Stock dividend

Payment of stock dividend results in an increase of the number of shares. No journal entries are made. However, on reconciliation, these transactions will get status booked.

Interest

Interest payment on bonds are booked on general ledger Interest.

Other bank journals

To close the balance of the bank it is possible to enter journal entries without having any relation to stock.

These transactions will not be processed.

Revaluation

Transactions, as a result of revaluation, will be booked on account Unrealized stock result in the Results daybook memo.

The sum of the results will be booked on account Effects.