thanks to Derek "svn diff" now works on the documentation xml files.
I'm attaching the svn diff output that includes my suggested updates.
Note there is about 1M of image (png - screenshots) that will need to
replace the current files. File name of the form invest_* in
the ..C/figures directory.
Who ever wants to review the images - ask.
Index: ch_invest.xml
===================================================================
--- ch_invest.xml (revision 13759)
+++ ch_invest.xml (working copy)
@@ -1,11 +1,14 @@
<!--
(Do not remove this comment block.)
+ Version: 1.9.x
+ Last modified: April 8th 2006
Version: 1.8.4
Last modified: April 10th 2004
Maintainers:
Chris Lyttle <[EMAIL PROTECTED]>
Author:
Jon Lapham <[EMAIL PROTECTED]>
+ Updated Dave Herman <[EMAIL PROTECTED]>
Originally designed by Carol Champagne.
Translators:
(translators put your name and email here)
@@ -55,7 +58,7 @@
<listitem>
<para>
-<emphasis>Dividends</emphasis> are cash payments a company makes to shareholders. The amount of this payment is usually determined as some amount of the profits the company. Note that not all common stocks give dividends.
+<emphasis>Dividends</emphasis> are cash payments a company makes to shareholders. The amount of this payment is usually determined as some amount of the profits of the company. Note that not all common stocks give dividends.
</para>
</listitem>
@@ -91,7 +94,7 @@
<listitem>
<para>
-<emphasis>Return</emphasis> is the total income plus capital gains or losses of an investment. See yield.
+<emphasis>Return</emphasis> is the total income plus capital gains or losses of an investment. See also <emphasis>Yield</emphasis>.
</para>
</listitem>
@@ -109,13 +112,13 @@
<listitem>
<para>
-<emphasis>Stock split</emphasis> occurs when a company offers to issue some additional multiple of shares for each existing stock. For example, a "2 for 1" stock split means that if you own 100 shares of a stock, you will receive an additional 100 at no cost to you. The unit price of the share will be adjusted so there is no net change in the value, so in this example the price per share will be halved.
+<emphasis>Stock split</emphasis> occurs when a company offers to issue some additional multiple of shares for each existing stock. For example, a "2 for 1" stock split means that if you own 100 shares of a stock, you will receive an additional 100 at no cost to you. The unit price of the shares will be adjusted so there is no net change in the value, so in this example the price per share will be halved.
</para>
</listitem>
<listitem>
<para>
-<emphasis>Valuation</emphasis> is the process of determining the sell value of an investment.
+<emphasis>Valuation</emphasis> is the process of determining the market value or the price the investment would sell at in a <quote>reasonable time frame</quote>.
</para>
</listitem>
@@ -140,10 +143,10 @@
<emphasis>Interest-bearing account or instrument</emphasis>
</para>
<para>
-This type of investment usually allows you immediate access to your money, and will typically pay you interest every month based on the amount of money you have saved. Examples are bank savings accounts (and some interest bearing checking accounts) and cash accounts at your brokerage. This is a very low risk investment, in the US these accounts are often insured against loss.
+This type of investment usually allows you immediate access to your money, and will typically pay you interest every month based on the amount of money you have deposited. Examples are bank savings accounts (and some interest bearing checking accounts) and cash accounts at your brokerage. This is a very low risk investment, in the US these accounts are often insured against loss, to a specified limit.
</para>
<para>
-Sometimes an interest bearing investment is <emphasis>time-locked</emphasis>. This type of investment requires you to commit your money to be invested for a given period of time for which you receive a set rate of return. Usually, the longer you commit the higher the interest rates. If you withdraw your money before the maturity date, you will usually have to pay an early withdrawal penalty. This is a low risk investment. Examples are certificates of deposit or some government bonds.
+Sometimes an interest bearing investment is <emphasis>time-locked</emphasis>. This type of investment requires you to commit your money to be invested for a given period of time for which you receive a set rate of return. Usually, the longer you commit the higher the interest rates. If you withdraw your money before the maturity date, you will usually have to pay an early withdrawal penalty. This is a relatively lower risk investment. Examples are certificates of deposit or some government bonds. Other types of Bonds may have higher yields based on the higher risks from the quality of the issuer's <quote>credit rating</quote>.
</para>
</listitem>
<listitem>
@@ -151,7 +154,7 @@
<emphasis>Stocks and Mutual Funds</emphasis>
</para>
<para>
-This is an investment you make in a company, in which you effectively become a part owner. There is usually no time lock on publicly traded stock, however there may be changes in the tax rates you pay on capital gains depending on how long you hold the stock. Thus, stocks are typically quite liquid, you can access your money relatively quickly. This investment is high risk, as you have no guarantee what the future price of a stock could be.
+This is an investment you make in a company, in which you effectively become a part owner. There is usually no time lock on publicly traded stock, however there may be changes in the tax rates you pay on capital gains depending on how long you hold the stock. Thus, stocks are typically quite liquid, you can access your money relatively quickly. This investment is a higher risk, as you have no guarantee on the future price of a stock.
</para>
<para>
A mutual fund is a group investment mechanism in which you can buy into many stocks simultaneously. For example, a "S&P 500 index fund" is a fund which purchases all 500 stocks listed in the Standard and Poor's index. When you buy a share of this fund, you are really buying a small amount of each of the 500 stocks contained within the fund. Mutual funds are treated exactly like a single stock, both for tax purposes and in accounting.
@@ -162,9 +165,9 @@
<emphasis>Fixed Assets</emphasis>
</para>
<para>
-An asset that increase in value over time are another form of investment. Examples include a house, a plot of land, or a valuable painting. This type of investment is very difficult to determine the value of until you sell it. The tax implications of selling these items is varied, depending on the item. For example, you may have tax relief from selling a house if it is your primary residence, but may would not receive this tax break on an expensive painting.
+An asset that increases in value over time are another form of investment. Examples include a house, a plot of land, or a valuable painting. This type of investment is very difficult to determine the value of until you sell it. The tax implications of selling these items is varied, depending on the item. For example, you may have tax relief from selling a house if it is your primary residence, but may would not receive this tax break on an expensive painting.
</para>
- <para>Fixed asset investments are discussed in the chapter on "Depreciation and Capital Gains". Typically, there is not much to do in terms of accounting for fixed asset investments except record the buying and selling transactions.</para>
+ <para>Fixed asset investments are discussed in the chapter on "Depreciation and Capital Gains". Typically, there is not much to do in terms of accounting for fixed asset investments except recording the buying and selling transactions.</para>
</listitem>
</itemizedlist>
@@ -176,6 +179,7 @@
<para>
To setup investment accounts in GnuCash you can either use the predefined investment account hierarchy or create your own. The minimum you need to do to track investments is to setup an asset account for each type of investment you own. However, as we have seen in previous chapters, it is usually more logical to create a structured account hierarchy, grouping related investments together. For example, you may want to group all your publicly traded stocks under a parent account named after the brokerage firm you used to buy the stocks.
</para>
+
<para>
Regardless of how you setup your account hierarchy, remember that you can always move accounts around later (without losing the work you've put into them), so your initial account hierarchy does not have to be perfect.
</para>
@@ -183,25 +187,27 @@
<sect2 id="invest_predefined2">
<title>Predefined Accounts</title>
<para>
-To use the predefined investment account hierarchy, you must create a new GnuCash file. This will run the <guilabel>New Account Hierarchy Setup</guilabel> druid. After choosing the default currency to use, you will be asked to <guilabel>Choose accounts to create</guilabel>. At this point, choose the "Investment Accounts" option (along with any others you are interested in). This will create an account hierarchy as shown below.
- <literallayout>
-- Assets
- - Investments
- - Brokerage Accounts
- - Mutual Funds
- - Market Index
- - Stock
- - Bond
-- Income
- - Interest Income
- - Bond Interest
- - Dividend Income
-- Expenses
- - Commissions
- </literallayout>
+To use the predefined investment account hierarchy, you <emphasis>must</emphasis> create a new GnuCash file. This will run the <guilabel>New Account Hierarchy Setup</guilabel> druid. After choosing the default currency to use, you will be asked to <guilabel>Choose accounts to create</guilabel>. At this point, choose the "Investment Accounts" option (along with any others you are interested in). Assuming only <quote>Investing Accounts</quote> were selected, this will create an account hierarchy as shown below.
</para>
+
+ <screenshot id="invest_AccountsPredef">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_AccountsPredef"
+ srccredit="Dave Herman" format="PNG"/>
+ </imageobject>
+ <textobject>
+ <phrase>Setup Interest Investment</phrase>
+ </textobject>
+ <caption>
+ <para>This is an screen image of the "Accounts" tab after creating a new file and selecting only the default investment accounts.
+ </para>
+ </caption>
+ </mediaobject>
+ </screenshot>
+
<para>
-You will probably at least want to add a <emphasis>Bank</emphasis> account to the Assets and probably an <emphasis>Equity:Starting Values</emphasis> account, as we have done in previous chapters.
+You will probably at least want to add a <emphasis>Bank</emphasis> account to the Assets and probably an <emphasis>Equity:Starting Balances</emphasis> account, as we have done in previous chapters. Don't forget to save your new account file with a relevant name!
</para>
</sect2>
@@ -210,53 +216,53 @@
<para>
You can also manually setup your own investment account hierarchy. The following is a somewhat more complicated example of setting up GnuCash to track your investments, which has the advantage that it groups each different investment under the brokerage that deals with the investments. This way it is easier to compare the statements you get from your brokerage with the accounts you have in GnuCash and spot where GnuCash differs from the statement.
<literallayout>
-- Assets
- - Investments
- - Brokerage Accounts
- - I*Trade
- - Stocks
- - ACME Corp
- - Money Market Funds
- - I*Trade Municipal Fund
- - Cash
- - My Stockbroker
- - Money Market Funds
- - Active Assets Fund
- - Government Securities
- - Treas Bond xxx
- - Treas Note yyy
- - Mutual Funds
- - Fund A
- - Fund B
- - Cash
-- Income
- - Investments
- - Brokerage Accounts
- - Capital Gains
- - I*Trade
- - My Stockbroker
- - Dividends
- - I*Trade
- - Taxable
- - Non-taxable
- - My Stockbroker
- - Taxable
- - Non-taxable
- - Interest Income
- - I*Trade
- - Taxable
- - Non-taxable
- - My Stockbroker
- - Taxable
- - Non-taxable
-- Expenses
- - Investment Expenses
- - Commissions
- - I*Trade
- - My Stockbroker
- - Management Fees
- - I*Trade
- - My Stockbroker
+ Assets
+ Investments
+ Brokerage Accounts
+ I*Trade
+ Stocks
+ ACME Corp
+ Money Market Funds
+ I*Trade Municipal Fund
+ Cash
+ My Stockbroker
+ Money Market Funds
+ Active Assets Fund
+ Government Securities
+ Treas Bond xxx
+ Treas Note yyy
+ Mutual Funds
+ Fund A
+ Fund B
+ Cash
+ Income
+ Investments
+ Brokerage Accounts
+ Capital Gains
+ I*Trade
+ My Stockbroker
+ Dividends
+ I*Trade
+ Taxable
+ Non-taxable
+ My Stockbroker
+ Taxable
+ Non-taxable
+ Interest Income
+ I*Trade
+ Taxable
+ Non-taxable
+ My Stockbroker
+ Taxable
+ Non-taxable
+ Expenses
+ Investment Expenses
+ Commissions
+ I*Trade
+ My Stockbroker
+ Management Fees
+ I*Trade
+ My Stockbroker
</literallayout>
</para>
<para>
@@ -278,16 +284,16 @@
When you purchase the interest bearing investment, you must create an asset account to record the purchase of the investment, an income account to record earnings from interest, and an expense account to record bank charges. Below is an account layout example, in which you have an interest bearing savings account and a certificate of deposit at your bank.
</para>
<literallayout>
--Asset
- -Bank
- -CD
- -Savings
--Expenses
- -Bank
- -Charges
--Income
- -Bank
- -Interest
+Asset
+ Bank AA
+ CD
+ Savings
+Expenses
+ Bank AA
+ Charges
+Income
+ Bank AA
+ Interest
</literallayout>
<para>
As usual, this account hierarchy is simply presented as an example, you should create your accounts in a form which best matches your actual situation.
@@ -296,38 +302,38 @@
<sect2 id="invest_intex2">
<title>Example</title>
<para>
-Now let's populate these accounts with real numbers. Let's assume that you start with $10000 in your bank account, which pays 1% interest and you buy a $5000 certificate of deposit with a 1 year maturity date and a 2% yield. Clearly, it is much better to keep your money in the CD than in the savings account. After the initial purchase, your accounts should look something like this:
+Now let's populate these accounts with real numbers. Let's assume that you start with $10000 in your bank account, which pays 1% interest and you buy a $5000 certificate of deposit with a 6 month maturity date and a 2% yield. Clearly, it is much better to keep your money in the CD than in the savings account. After the initial purchase, your accounts should look something like this:
</para>
<screenshot id="invest_int">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_int1.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Setup Interest Investment</phrase>
</textobject>
<caption>
- <para>This image the creation of the interest investment account
+ <para>This is an image of the account register after the creation and investing in a CD investment.
</para>
</caption>
</mediaobject>
</screenshot>
<para>
-Now, during the course of the next year, you receive monthly bank statements which describe the activity of your account. In our fictional example, we do nothing with the money at this bank, so the only activity is income from interest and bank charges. The monthly bank charges are $2. After 12 months, the register window for the CD should look like this:
+Now, during the course of the next 6 month, you receive monthly bank statements which describe the activity of your account. In our fictional example, we do nothing with the money at this bank, so the only activity is income from interest and bank charges. The monthly bank charges are $2. After 6 months, the register window for the CD should look like this:
</para>
<screenshot id="invest_int2">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_int2.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Setup Interest Investment</phrase>
</textobject>
<caption>
- <para>This image the creation of the interest investment account
+ <para>This is an image of the register of the CD account after 6 months.
</para>
</caption>
</mediaobject>
@@ -339,13 +345,13 @@
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_int3.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Setup Interest Investment</phrase>
</textobject>
<caption>
- <para>This image the creation of the interest investment account
+ <para>This a screen capture of the accounts after 6 months.
</para>
</caption>
</mediaobject>
@@ -362,7 +368,7 @@
<sect1 id="invest_setup1">
<title>Setup Stock Portfolio</title>
<para>
-Now that you have build an account hierarchy in the previous section, this section will show you how to populate the accounts with your stock portfolio. During this initial setup of your portfolio, you may have stocks purchased from before you started using GnuCash. For these stocks, follow the instructions in the <emphasis>Setup Your Pre-existing Stocks</emphasis> section below. If your have just purchased your stocks, then use the <emphasis>Buying New Stocks</emphasis> section.
+Now that you have built an account hierarchy in the previous section, this section will show you how to populate the accounts with your stock portfolio. During this initial setup of your portfolio, you may have stocks purchased from before you started using GnuCash. For these stocks, follow the instructions in the <emphasis>Setup Your Preexisting Stocks</emphasis> section below. If your have just purchased your stocks, then use the <emphasis>Buying New Stocks</emphasis> section.
</para>
<sect2 id="invest_setup_preexisting2">
@@ -371,86 +377,196 @@
This section will show you how to add stocks to GnuCash assuming that you purchased these stocks from before you started using GnuCash. In this section, we will assume you are using the basic predefined account setup introduced in the previous section, but the principles can be applied to any account hierarchy.
</para>
<para>
-You should have within the top level <guilabel>Asset</guilabel> account, a few levels down, an account entitled <guilabel>Stock</guilabel>. Open the account tree to this level by clicking on the + (plus) signs next to the account names until the tree to fully opened. You will need to create a sub-account (of type <emphasis>stock</emphasis>) under the Stock account for every stock you own. Every stock is a separate account. The naming of these stock accounts is usually done using the stock ticker abbreviation. So, for example, you could name your accounts <emphasis>AMZN</emphasis> and <emphasis>IBM</emphasis> for your Amazon and IBM stocks respectively. Below is a schematic model of the layout (only showing the Assets sub-accounts).
+You should have within the top level <guilabel>Asset</guilabel> account, a few levels down, an account entitled <guilabel>Stock</guilabel>. Open the account tree to this level by clicking on the <quote>arrow marker</quote> signs next to the account names until the tree is opened to the depth of the new account. You will need to create a sub-account (of type <emphasis>stock</emphasis>) under the Stock account for every stock you own. Every stock is a separate account. The naming of these stock accounts is usually done using the stock ticker abbreviation. So, for example, you could name your accounts <emphasis>AMZN</emphasis> and <emphasis>IBM</emphasis> for your Amazon and IBM stocks respectively. Below is a schematic model of the layout (only showing the Assets sub-accounts).
</para>
<literallayout>
-- Assets
- - Investments
- - Brokerage Accounts
- - Mutual Funds
- - Market Index
- - Stock
- - AMZN
- - IBM
- - Bond
+ Assets
+ Investments
+ Brokerage Accounts
+ Bond
+ Mutual Funds
+ Market Index
+ Stock
+ AMZN
+ IBM
</literallayout>
</sect2>
<sect2 id="invest_setup_example2">
<title>Example Stock Account</title>
- <para>As an example, let's assume that you currently own 100 shares of Amazon stock. First, create the stock account AMZN by selecting the <guilabel>Stock</guilabel> account and click on the menu <guimenu>File</guimenu> -> <guimenu>New Account</guimenu>. The New Account dialog will appear, follow the step below to setup your new stock account.</para>
+ <para>As an example, let's assume that you currently own 100 shares of Amazon stock. First, create the stock account AMZN by selecting the <guilabel>Stock</guilabel> account and click on the menu <guimenu>File</guimenu> -> <guimenu>New Account</guimenu>. The New Account dialog will appear, follow the steps, in the sequence below to setup your new stock account.</para>
+
+ <screenshot id="invest_newaccount">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_newaccount.png"
+ srccredit="Dave Herman" format="PNG"/>
+ </imageobject>
+ <textobject>
+ <phrase>New Account Window</phrase>
+ </textobject>
+ <caption>
+ <para>New Account Window
+ </para>
+ </caption>
+ </mediaobject>
+ </screenshot>
+
<orderedlist>
+
<listitem>
- <para><emphasis>Name the Account</emphasis> - Usually, use the stock ticker abbreviation, IE: <quote>AMZN</quote></para>
+ <para><emphasis>Account Name</emphasis> - Usually, use the stock ticker abbreviation, IE: <quote>AMZN</quote></para>
</listitem>
<listitem>
+ <para><emphasis>Account Code</emphasis> - Optional field, use CUSIP, the newspaper listing symbol, mutual fund family ID or code of your own choosing.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Description</emphasis> - Optional field for detailed description of the commodity/stock. Note this field by default is displayed in the Account tab tree.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Account Type</emphasis> - Select the type of account you are creating from the lower left-hand list.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Parent Account</emphasis> - Select the parent account for the new account from the right hand listing. Expand list of accounts if necessary.</para>
+ </listitem>
+
+ <listitem>
<para><emphasis>Create the New Commodity</emphasis> - To use a new stock, you must create the stock as a new commodity</para>
- <orderedlist>
+ <itemizedlist>
<listitem>
- <para><emphasis>Select Commodity</emphasis> - Click on the <quote>Select</quote> button next to the <guilabel>Commodity</guilabel> line. We must change the commodity from the default (your default currency) to this specific stock. This will bring up the <quote>Select currency/security</quote> dialog.</para>
+ <para><emphasis>Select Commodity</emphasis> - Click on the <quote>Select ...</quote> button next to the <guilabel>Commodity</guilabel> line. We must change the commodity from the default (your default currency) to this specific stock. This will bring up the <quote>Select currency/security</quote> dialog.</para>
</listitem>
+
<listitem>
- <para><emphasis>Commodity Type</emphasis> - Change the <guilabel>type</guilabel> from CURRENCY to (in this example) NASDAQ. </para>
+ <para><emphasis>Type</emphasis> - Change the <guilabel>type</guilabel> from current to the exchange where the security/commodity is traded (in this example NASDAQ). </para>
+
+ <para>Select the <quote>New</quote> Button to open the <quote>New Security</quote> window.</para>
+
+ <screenshot id="invest_selectsecurity">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_selectsecurity.png"
+ srccredit="Dave Herman" format="PNG"/>
+ </imageobject>
+ <textobject>
+ <phrase>Select Security Window</phrase>
+ </textobject>
+ <caption>
+ <para>Select Security Window
+ </para>
+ </caption>
+ </mediaobject>
+ </screenshot>
+
</listitem>
+
<listitem>
- <para><emphasis>Create the Commodity</emphasis> - Click on the <guilabel>New...</guilabel> button and enter the appropriate information for this stock. The <guilabel>Full name:</guilabel> is <quote>Amazon.com Inc</quote>, the <guilabel>Symbol/abbreviation:</guilabel> is <quote>AMZN</quote>, the <guilabel>Type:</guilabel> should already be <quote>NASDAQ</quote>, the <guilabel>CUSIP or other code</guilabel> is where you can enter some other coding number or text (leave it blank in this example), and finally the <guilabel>Fraction traded</guilabel> should be adjusted to the smallest fraction of this commodity which can be traded, usually 1/100 or 1/10000. Below is what this window should look like when finished:
- <screenshot id="invest_newsecurity">
+ <para><emphasis>Create the Commodity</emphasis> - Click on the <guilabel>New...</guilabel> button and enter the appropriate information for this stock on the new form <guilabel>New Commodity</guilabel>.</para>
+
+<!-- Open inter most loop (#3)
+-->
+ <itemizedlist>
+ <listitem>
+ <para>The <guilabel>Full name:</guilabel> is <quote>Amazon.com Inc</quote>, the <guilabel>Symbol/abbreviation:</guilabel> is <quote>AMZN</quote>.</para>
+ </listitem>
+
+ <listitem>
+ <para>The <guilabel>Type:</guilabel> should already be <quote>NASDAQ</quote>.</para>
+ </listitem>
+
+ <listitem>
+ <para>The <guilabel>CUSIP or other code</guilabel> is where you can enter some other coding number or text (leave it blank in this example).</para>
+ </listitem>
+
+ <listitem>
+ <para>The <guilabel>Fraction traded</guilabel> should be adjusted to the smallest fraction of this commodity which can be traded, usually 1/100 or 1/10000.</para>
+ </listitem>
+
+ <listitem>
+ <para>The box <quote>Get Online Quotes</quote> and the quote source and the timezone should be selected to define the sources for updating prices on-line. See Also <quote>Setting Stock Price Automatically</quote>.</para>
+
+ <para>Below is what this window should look like when finished:
+ <screenshot id="invest_newcommodity">
<mediaobject>
<imageobject>
- <imagedata fileref="figures/invest_newsecurity.png"
- srccredit="Jon Lapham" format="PNG"/>
+ <imagedata fileref="figures/invest_newcommodity.png"
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
- <phrase>New Security Window</phrase>
+ <phrase>New Commodity Window</phrase>
</textobject>
<caption>
- <para>New Security Window
+ <para>New Commodity Window
</para>
</caption>
</mediaobject>
</screenshot>
- </para>
- </listitem>
+ </para>
+ </listitem>
+
<listitem>
- <para><emphasis>Save Commodity</emphasis> - Click on the <guilabel>OK</guilabel> button to save this new commodity</para>
+ <para><emphasis>Save Commodity</emphasis> - Click on the <guilabel>OK</guilabel> button to save this new commodity, this will close the <quote>New Commodity</quote> window and return to the <quote>New Account</quote> window.</para>
</listitem>
- </orderedlist>
+
+ </itemizedlist>
+<!-- Close inter most loop
+-->
+ </listitem>
+
+<!-- Close loop #2
+-->
+
+ </itemizedlist>
</listitem>
<listitem>
- <para><emphasis>Select the Commodity</emphasis> - you should now see the newly create commodity available in the pull down menu for <guilabel>Currency/security</guilabel>. Select it (it is probably already selected) and click on <guilabel>OK</guilabel>.</para>
+ <para><emphasis>Select the Commodity</emphasis> - you should now see the newly created commodity available in the pull down menu for <guilabel>Currency/security</guilabel>. Select it (it is probably already selected) and click on <guilabel>OK</guilabel>.</para>
</listitem>
+
<listitem>
+ <para><emphasis>Smallest Fraction</emphasis> - Specify the smallest fraction of the commodity/security that is traded.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Notes</emphasis> - Enter any notes or messages related to this commodity/security. </para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Tax Related</emphasis> - Check box if this account's transactions will relate to Tax Reports. </para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Placeholder</emphasis> - Check box if this account is a <quote>Placeholder</quote>, that is it will contain no transactions. </para>
+ </listitem>
+
+ <listitem>
<para><emphasis>Finished</emphasis> - You should now have been automatically returned to the New Account dialog, with the <guilabel>Commodity:</guilabel> line set to <quote>AMZN (Amazon.com Inc)</quote>. Click on <guilabel>OK</guilabel> to save this new stock account.</para>
</listitem>
+<!--
+ Outer list can now be closed
+-->
+
</orderedlist>
- <para>You have now create the Amazon stock account, your main account should look something like this (notice that there are a few extra account here, a bank account, and an equity account):</para>
+ <para>You have now created the Amazon stock account, your main account should look something like this (notice that there are a few extra accounts here, a bank account, and an equity account):</para>
<screenshot id="invest_setup_current">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_setup_current.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Setup Current Portfolio</phrase>
</textobject>
<caption>
- <para>This image the creation of the first stock account
+ <para>This image is after the creation of the first stock account
</para>
</caption>
</mediaobject>
@@ -465,7 +581,7 @@
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_setup_portfolio1.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Setup Current Portfolio</phrase>
@@ -503,7 +619,7 @@
<para><guilabel>Commodity</guilabel> - the name of the commodity, must be chosen from the <guibutton>Select...</guibutton> list</para>
</listitem>
<listitem>
- <para><guilabel>Currency</guilabel> - the currency the in which the Price is expressed.</para>
+ <para><guilabel>Currency</guilabel> - the currency in which the Price is expressed.</para>
</listitem>
<listitem>
<para><guilabel>Date</guilabel> - date that the price is valid</para>
@@ -516,11 +632,12 @@
</listitem>
</itemizedlist>
+ <para>As an example of adding the AMZN commodity to the price editor, with an initial value of $40.50 per share.</para>
<screenshot id="invest_peditor">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_peditor.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Price Editor</phrase>
@@ -532,34 +649,35 @@
</screenshot>
<para>Click <guibutton>OK</guibutton> when finished. Once you have performed this initial placement of the commodity into the Price Editor, you will not have to do it again, even if you use the same commodity in another account.</para>
+ </sect2>
+ <sect2 id="invest_stockprice_manual2">
+ <title>Setting Stock Price Manually</title>
+ <para>
+If the value of the commodity (stock) changes, you can adjust the value by entering the Price Editor, selecting the commodity, clicking on <guibutton>edit</guibutton> and entering the new price.
+ </para>
+
<screenshot id="invest_peditor2">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_peditor2.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Price Editor</phrase>
</textobject>
<caption>
- <para>The main price editor window, showing the list of all known commodities.</para>
+ The main price editor window, showing the list of all known commodities.
</caption>
</mediaobject>
</screenshot>
</sect2>
- <sect2 id="invest_stockprice_manual2">
- <title>Setting Stock Price Manually</title>
- <para>
-If the value of the commodity (stock) changes, you can adjust the value by entering the Price Editor, selecting the commodity, clicking on <guibutton>edit</guibutton> and entering the new price.
- </para>
- </sect2>
-
<sect2 id="invest_stockprice_auto2">
<title>Setting Stock Price Automatically</title>
- <para>If you have many commodities, you will tire of having to update their prices constantly. GnuCash has the ability to automatically determine the most recent price for your commodities using the Internet. This is accomplished through the Perl module Finance::Quote, which must be installed in order to activate this feature. </para>
- <para>To determine if the Perl module Finance::Quote is already installed on your system, type <quote>perldoc Finance::Quote</quote> in a terminal window and look to see if there is any documentation available. If you see the documentation, then the module is installed, if you do not see the documentation, then it has not been installed.</para>
+ <para>If you have more than a couple of commodities, you will tire of having to update their prices constantly. GnuCash has the ability to automatically download the most recent price for your commodities using the Internet. This is accomplished through the Perl module Finance::Quote, which must be installed in order to activate this feature.
+ </para>
+ <para>To determine if the Perl module Finance::Quote is already installed on your system, type <quote>perldoc Finance::Quote</quote> in a terminal window and check to see if there is any documentation available. If you see the documentation, then the module is installed, if you do not see the documentation, then it has not been installed.</para>
<sect3 id="invest_stockprice_auto_install3">
<title>Installing Finance::Quote</title>
<para>To install Finance::Quote begin by first closing any GnuCash applications you have running. Second, open a root shell and run the command <quote>update-finance-quote</quote> (without the quotation marks). This will launch a Perl CPAN update session that will go out onto the Internet and install the Finance::Quote module on your system. The update-finance-quote program is interactive, however, with most systems you should be able to answer "no" to the first question: <quote>Are you ready for manual configuration? [yes]</quote> and the update will continue automatically from that point.</para>
@@ -570,23 +688,27 @@
</sect3>
<sect3 id="invest_stockprice_auto_configure3">
<title>Configuring Finance::Quote</title>
- <para>With Finance::Quote installed and functioning correctly, you must configure your GnuCash stock accounts to use this feature to obtain updated price information automatically. For stock accounts that have already been setup, <guibutton>edit</guibutton> the account and select the <guilabel>Get Online Quotes</guilabel> box. You should now be able to modify the popup menus <guilabel>The source for price quotes</guilabel> and <guilabel>The timezone for these quotes</guilabel>. When finished editing the stock account, return to the price editor and click on the <guibutton>Get Quotes</guibutton> button to update your stock prices on the internet.</para>
+ <para>With Finance::Quote installed and functioning correctly, you must configure your GnuCash stock accounts to use this feature to obtain updated price information automatically. For stock accounts that have already been setup, <guibutton>edit</guibutton> the account and select the <guilabel>Get Online Quotes</guilabel> box. You should now be able to modify the pop-up menus <guilabel>The source for price quotes</guilabel> and <guilabel>The timezone for these quotes</guilabel>. When finished editing the stock account, return to the price editor and click on the <guibutton>Get Quotes</guibutton> button to update your stock prices on the Internet.</para>
<para>The command "gnucash --add-price-quotes $HOME/gnucash.xac" can be used to fetch the current prices of your stocks. This can be automated by creating a crontab entry. For example, to update your file every Friday evening after the Wall Street markets close (modify the time accordingly for your time zone), you could add the following to your personal crontab:</para>
<para>0 16 * * 5 gnucash --add-price-quotes $HOME/gnucash.xac > /dev/null 2>&1 </para>
+ <para>Remember that Mutual Fund "prices" are really "Net Asset Value" and require several hours after the exchange closes before being available. If prices are downloaded before the current days NAV is determined, yesterday's NAV is retrieved.
+ </para>
+
</sect3>
</sect2>
<sect2 id="invest_stockprice_view2">
- <title>Displaying Stock Value</title>
+<title>Displaying Stock Value</title>
<para>
-The main account window will by default only shows the quantity of each commodity that you own, under the column heading <guilabel>Total</guilabel>. In the case of stocks, this commodity is the number of shares. Often, however, you will want to see the value of your stocks expressed in terms of some monetary unit. This is easily accomplished by entering the main window account options, by clicking on the tool bar <guibutton>Options</guibutton> button, and select to display the account field <quote>Total in Report Currency</quote>. You will see a new column in the main window entitled <guilabel>Total (Report)</guilabel> that will express the value of all commodities in the report currency.
+The main account window will by default only shows the quantity of each commodity that you own, under the column heading <guilabel>Total</guilabel>. In the case of stocks, this commodity is the number of shares. Often, however, you will want to see the value of your stocks expressed in terms of some monetary unit. This is easily accomplished by entering the main window, selecting
+the "Accounts" tab, by clicking on the title bar <guibutton>Options</guibutton> button, and selecting the option to display the account total field <quote>Total (USD)</quote>. You will see a new column in the main window entitled <guilabel>Total (USD)</guilabel> that will express the value of all commodities in the report currency.
</para>
<screenshot id="invest_stockvalue">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_stockvalue.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Viewing Stock Value</phrase>
@@ -636,7 +758,7 @@
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_stockvalue_report.png"
- srccredit="Tomas Pospisek" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>An Asset Barchart Report based on the <guilabel>Nearest in time</guilabel> Price Source.</phrase>
@@ -663,11 +785,11 @@
<sect1 id="invest_sell1">
<title>Selling Stocks</title>
- <para>Entering an investment you are selling is done in the same way as buying one except the total cost of the transaction is entered in the <emphasis>Sell</emphasis> column and the <emphasis>Shares</emphasis> column is entered as a negative amount. The proceeds from the sale should be transferred from the stock account to your bank account.</para>
+ <para>Entering an investment you are selling is done in the same way as buying one except the total cost of the transaction is entered in the <emphasis>Sell</emphasis> column and the <emphasis>Shares</emphasis> column is entered as a negative amount. The net proceeds from the sale should be transferred from the stock account to your bank or brokerage account.</para>
<para>The proper recording of the stock sale *must* be done using a split transaction. In the split transaction, you must account for the profit (or loss) as coming from an Income:Capital Gains account (or Expense:Capital Loss). To balance this income, you will need to enter the stock asset twice in the split. Once to record the actual sale (using the correct number of shares and correct price per share) and once to balance the income profit (setting the number of shares to 0 and price per share to 0).</para>
- <para>In the split transaction scheme presented below, the symbol NUM_SHARES is the number of shares you are selling, SELL_PRICE is the price for which you sold the shares, GROSS_TOTAL is the total price for which you sold shares, equal to NUM_SHARES*SELL_PRICE. PROFIT is the amount of money you made on the sale. COMMISSIONS are the brokerage commissions. NET_SALE is the net amount of money received from the sale, equal to GROSS_TOTAL - COMMISSIONS.</para>
+ <para>In the split transaction scheme presented below, the symbol NUM_SHARES is the number of shares you are selling, SELL_PRICE is the price for which you sold the shares, GROSS_SALE is the total price for which you sold shares, equal to NUM_SHARES*SELL_PRICE. PROFIT is the amount of money you made on the sale. COMMISSIONS are the brokerage commissions. NET_SALE is the net amount of money received from the sale, equal to GROSS_SALE - COMMISSIONS.</para>
<table>
- <title>Selling Stock Split Transaction Scheme</title>
+ <title>Selling Stock using Split Transaction Scheme</title>
<tgroup cols="3">
<tbody>
<row>
@@ -693,16 +815,16 @@
</row>
<row>
<entry>Asset:Stock:SYMBOL</entry>
- <entry></entry>
- <entry></entry>
+ <entry>0</entry>
+ <entry>0</entry>
<entry>PROFIT</entry>
- <entry></entry>
+ <entry>(Loss)</entry>
</row>
<row>
<entry>Income:Capital Gains</entry>
<entry></entry>
<entry></entry>
- <entry></entry>
+ <entry>(Loss)</entry>
<entry>PROFIT</entry>
</row>
<row>
@@ -719,26 +841,154 @@
<para>If you will be recording the sale of the stock as a capital gain (or loss), please see the chapter "Depreciation and Capital Gains" for more information on this topic.</para>
<sect2 id="invest_sellexample2">
- <title>Example</title>
+ <title>Example - Sale of stock with profit </title>
- <para>As an example, assume you bought 100 shares of a stock for $20 per share, then later sell them all for $30 per share. In the split transaction scheme above, PRICEBUY is $20 (the original buying price), NUMSHARES is 100, TOTALBUY is $2000 (the original buying price), TOTALPROFIT is $1000, and finally TOTALSALE is $3000.</para>
+ <para>As an example, assume you bought 100 shares of a stock for $20 per share, then later sell them all for $30 per share. In the split transaction scheme above, PRICEBUY is $20 (the original buying price), NUM_SHARES is 100, TOTALBUY is $2000 (the original buying cost), GROSS_SALE is $3000, and finally PROFIT is $1000 (GROSS_SALE-TOTALBUY-COMMISSION).</para>
- <screenshot id="invest_sellstock2">
+ <table>
+ <title>Selling Stock Split Transaction Scheme</title>
+ <?dbhtml table-width="50%" ?>
+ <?dbfo table-width="50%" ?>
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+ <entry><emphasis>Shares</emphasis></entry>
+ <entry><emphasis>Price</emphasis></entry>
+ <entry><emphasis>Buy</emphasis></entry>
+ <entry><emphasis>Sell</emphasis></entry>
+ </row>
+ <row>
+ <entry>Asset:Bank</entry>
+ <entry></entry>
+ <entry></entry>
+ <entry>2965.00</entry>
+ <entry></entry>
+ </row>
+ <row>
+ <entry>Asset:Stock:SYMBOL</entry>
+ <entry>-100</entry>
+ <entry>30.00</entry>
+ <entry></entry>
+ <entry>3000.00</entry>
+ </row>
+ <row>
+ <entry>Asset:Stock:SYMBOL</entry>
+ <entry>0</entry>
+ <entry>0</entry>
+ <entry>1000.00</entry>
+ <entry></entry>
+ </row>
+ <row>
+ <entry>Income:Capital Gains</entry>
+ <entry></entry>
+ <entry></entry>
+ <entry></entry>
+ <entry>1000.00</entry>
+ </row>
+ <row>
+ <entry>Expenses:Commissions</entry>
+ <entry></entry>
+ <entry></entry>
+ <entry>35.00</entry>
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+<screenshot id="invest_sellstock">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_sellstock.png"
- srccredit="Jon Lapham" format="PNG"/>
+ srccredit="Dave Herman" format="PNG"/>
</imageobject>
<textobject>
<phrase>Selling Stock Example</phrase>
</textobject>
<caption>
- <para>An example of selling stock. You bought 100 shares of AMZN for $20 per share, and sold for $30.</para>
+ <para>An example of selling stock for gain. You bought 100 shares of AMZN for $20 per share, and sold for $30.</para>
</caption>
</mediaobject>
</screenshot>
+ </sect2>
+ <sect2 id="invest_sellexampleloss">
+ <title>Example - Sale of stock with loss </title>
+
+ <para>As an example, assume you bought 100 shares of a stock for $100 per share, then later sell them all for $50 per share. In the split transaction scheme below, PRICEBUY is $100 (the original buying price), NUM_SHARES is 100, TOTAL_BUY is $10,000 (the original buying price), (Loss) is $5000, and finally GROSS_SALE is $5000. Assume the commission was $100.00.</para>
+
+
+ <table>
+ <title>Selling Stock at loss Split Transaction Scheme</title>
+ <?dbhtml table-width="50%" ?>
+ <?dbfo table-width="50%" ?>
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+ <entry><emphasis>Shares</emphasis></entry>
+ <entry><emphasis>Price</emphasis></entry>
+ <entry><emphasis>Buy</emphasis></entry>
+ <entry><emphasis>Sell</emphasis></entry>
+ </row>
+ <row>
+ <entry>Asset:Bank</entry>
+ <entry></entry>
+ <entry></entry>
+ <entry>$4900.00</entry>
+ <entry></entry>
+ </row>
+ <row>
+ <entry>Asset:Stock:SYMBOL</entry>
+ <entry>-100</entry>
+ <entry>50.00</entry>
+ <entry></entry>
+ <entry>5000.00</entry>
+ </row>
+ <row>
+ <entry>Asset:Stock:SYMBOL</entry>
+ <entry>0</entry>
+ <entry>0</entry>
+ <entry> </entry>
+ <entry>5000.00</entry>
+ </row>
+ <row>
+ <entry>Income:Capital Gains</entry>
+ <entry></entry>
+ <entry></entry>
+ <entry>5000.</entry>
+ <entry>0</entry>
+ </row>
+ <row>
+ <entry>Expenses:Commissions</entry>
+ <entry></entry>
+ <entry></entry>
+ <entry>0</entry>
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+ <para>Note: You may either enter the loss as a positive number in the "buy" column or as a negative number in the "sell" column, GnuCash will move the "negative profit" to the other column.
+ </para>
+
+ <screenshot id="invest_sellstockLoss">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_sellstockLoss.png"
+ srccredit="Dave Herman" format="PNG"/>
+ </imageobject>
+ <textobject>
+ <phrase>Selling Stock at loss Example</phrase>
+ </textobject>
+ <caption>
+ <para>Above is a screenshot of the example of selling stock. You bought 100 shares for $100.00 per share, and sold for $50.</para>
+ </caption>
+ </mediaobject>
+ </screenshot>
+
</sect2>
</sect1>
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