The MSN Money cost basis may differ from the Money cost basis in the Portfolio (174999)

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MSN Investor uses FIFO (First In First Out) to calculate the cost basis for your remaining investment shares. Microsoft Money also normally uses FIFO. However, Money can also use Average Cost. Additionally, Microsoft Money 99 and later can also use Lots.

The example in the following table shows the difference between the FIFO and Average Cost accounting methods:

Date	Activity	Amount	Cost	Avg. Cost	Average Cost Basis	FIFO Cost Basis
1/1/97	Buy	10	$10	$10	$100	$100
2/1/97	Buy	10	$20	$15	$300	$300
3/1/97	Buy	10	$30	$20	$600	$600
4/1/97	Buy	10	$40	$25	$1000	$1000
5/1/97	Sell	30	$40	$25	$250	$400

When you use the FIFO accounting method, you sell the first securities you purchased (in this example, the securities you purchased in the first three transactions). The program then uses the earliest cost for the remaining securities to calculate the cost basis (in this example, the program uses the cost for the securities you purchased purchased on 4/1/97).

Money and Investor both use the following formula when they use the FIFO method:
The following example of a FIFO equation uses the information from the previous table:
If you configure Money to use the Average Cost method, it uses the following formula:
The following example of an Average Cost equation uses the information from the previous table:
Money 2000 and later versions let you associate a "price" with transfered shares when you use the Add Shares feature. This price, if provided, is used in Money's Cost Basis calculations.

For more information, click the following article number to view the article in the Microsoft Knowledge Base: