How to create a spin-off for a stock on the same day in Microsoft Money (893720)


The information in this article applies to:

  • Microsoft Money 2005 Deluxe
  • Microsoft Money 2004 Deluxe
  • Microsoft Money 2003 Deluxe
  • Microsoft Money 2002 Deluxe Edition
Content Maintenance:32636

SUMMARY

You cannot track a second spin-off for a stock on the same day in Microsoft Money 2002 and later versions. This article describes the methods that you can use to work around this problem.

SYMPTOMS

When you try to record two spin-offs for a stock on the same day in Microsoft Money 2002 and later versions, the second spin-off is not tracked correctly. Although you may see a confirmation dialog box for the second spin-off that states that the spin-off has been successfully completed, you do not see the entry for the new stock in your portfolio list.

WORKAROUND

Note In this article, the account names, the investment names, the numeric values, and the dates that are used are fictitious and are only used to demonstrate the methods that you can use to create the two spin-offs. When you follow these steps in your version of Microsoft Money, you will use your own account names, investment names, numeric values, and dates.

To create two spin-offs, see the following example.

Initial Portfolio
Stock Name = Stock 1
Shares held = 6000
Buying price = $ 11.00
Commission = $ 0.0
Purchase date = 2/02/2004

Note Stock 1 is recorded under Investments
Account Name under which Stock 1 has been recorded in Money 2005 = Stocks
Spin-off 1
Stock Name = Stock 1-A
Allotment ratio = 1:1
Percentage of old share value = 35 %
Spin-off date = 2/25/2005
Spin-off 2
Stock Name = Stock 1-B
Allotment ratio = 1:1
Percentage of old share value = 30 %
Spin-off date = 2/25/2005

Microsoft Money 2005

To work around this problem in Money 2005, delete the Add Shares transactions or the Remove Shares transactions of the first spin-off. To do this, use the following methods in the order that they appear in.

Method 1: Record the first spin-off

  1. Start Money 2005.
  2. In the left pane, click Accounts List.
  3. In the Account List, under Investment Accounts, click Stocks.
  4. In the View pane, click More Investing Tasks, point to Record a special activity, and then click Record a spin-off.
  5. In the Company organizing the spin-off list, click Stock 1.
  6. In the New company box, type Stock 1-A, and then click Next two times.
  7. In the Date of spin-off box, type 2/25/2005 or click 2/25/2005, and then click Next.
  8. In the Shares of Stock 1-A box, type 1, and then click Record the cost basis for my shares of Stock 1-A as a percent of the cost basis of Stock 1.
  9. In the Percent should be box, type 35, and then click Next.
  10. Click Finish, and then click OK.

Method 2: Delete the Add Shares transactions and the Remove Shares transactions

  1. On the Account List page, click the Remove Shares entry that is dated 2/25/2005 for Stock 1, and then click Delete under the transactions window.
  2. Click Yes.
  3. Click the Add Shares entry that is dated 2/25/2005 for Stock 1, and then click Delete under the transactions window.
  4. Click Yes.

Method 3: Record the second spin-off

  1. On the Account List page, click More Investing Tasks, point to Record a special activity, and then click Record a spin-off.
  2. In the Company organizing the spin-off list, click Stock 1.
  3. In the New company box, type Stock 1-B, and then click Next two times.
  4. In the Date of spin-off box, type 2/25/2005 or click 2/25/2005, and then click Next.
  5. In the Shares of Stock 1-B box, type 1, and then click Record the cost basis for my shares of Stock 1-B as a percent of the cost basis of Stock 1.
  6. In the Percent should be box, type 30, and then click Next.
  7. Click Finish, and then click OK.
  8. Quit Money 2005.

Method 4: Add an assistance transaction

To add an assistance transaction, use the following methods in the order that they appear in:
  • Record the first spin-off. To do this, follow the steps that are listed in Method 1.
  • Add an Add Shares transaction that has a date that is one day before the spin-off.
  • Record the second spin-off. To do this, follow the steps that are listed in Method 3.
To add an Add Shares transaction that has a date that is one day before the spin-off, follow these steps:
  1. On the Account List page, click New under the transactions window.
  2. In the Date list, type 2/25/2005 or click 2/25/2005.
  3. In the Activities list, click Add Shares.
  4. On the right, in the Quantity box, type 6000, the original quantity of shares.
  5. In the Price box, type 7.15, the new value of the share after the first spin-off.
  6. Click Enter.

Method 5: Remove the three additional transactions

  1. On the Account List page, click the Add Shares transaction entry for Stock 1 for the previous date, 2/25/2005.
  2. Under the transactions window, click Delete.
  3. In a similar manner, remove the Add Shares and the Remove Shares transaction entries that exist for the first spin-off for Stock 1.
  4. Quit Money 2005.

Method 6: Change the spin-off date

To change the spin-off date, use the following methods in the order that they appear in:
  • Record the first spin-off. To do this, follow the steps that are listed in Method 1.
  • Record the second spin-off on the following day.
  • Manually correct the second spin-off entries.
To record the second spin-off on the following day, follow these steps:
  1. Start Money 2005.
  2. In the left pane, click Accounts List.
  3. In the Account List, under Investment Accounts, click Stocks.
  4. In the left View pane, click More Investing Tasks, point to Record a special activity, and then click Record a spin-off.
  5. In the Company organizing the spin-off list, click Stock 1.
  6. In the New company box, type Stock 1-B, and then click Next two times.
  7. In the Date of spin-off box, type 2/26/2005 or click 2/26/2005, and then click Next.
  8. In the shares of Stock 1-B box, type 1, and then click Record the cost basis for my shares of Stock 1-B as a percent of the cost basis of Stock 1.
  9. In the Percent should be box, type 30, and then click Next.
  10. Click Finish, and then click OK.
To manually correct the second spin-off entries, follow these steps:
  1. On the Account Register page, you will see three entries for the second spin-off on 2/26/2005.
  2. Click the first entry for the date 2/26/2005.
  3. Click Edit, click 2/25/2005 in the Date list, and then press ENTER.
  4. Click Yes to acknowledge the warning that you receive.
  5. Change the remaining two entries for 2/26/2005 in a similar manner.
  6. Quit Money 2005.

Money 2002, Microsoft Money 2003, and Microsoft Money 2004

To work around this problem in Money 2002, in Money 2003, and in Money 2004, delete the Add Shares transactions or the Remove Shares transactions of the first spin-off. To do this, use the following methods in the order that they appear in.

Method 1: Record the first spin-off

  1. Start your version of Money.
  2. On the Icon bar, click Portfolio.
  3. In the Common Tasks pane, click Record a special activity, and then click Record a spin-off.
  4. In the Company organizing the spin-off list, click Stock 1.
  5. In the New company box, type Stock 1-A, and then click Next two times.
  6. In the Date of spin-off box, type 2/25/2005 or click 2/25/2005, and then click Next.
  7. In the shares of Stock 1-A box, type 1, and then click Record the cost basis for my shares of Stock 1-A as a percent of the cost basis of Stock 1.
  8. In the Percent should be box, type 35, and then click Next.
  9. Click Finish, and then click OK.

Method 2: Delete the Add Shares and the Remove Shares transactions

  1. On the Portfolio page, right-click Stock 1, and then click See Investment Activities.
  2. Click the Remove Shares entry that is dated 2/25/2005, and then click Delete under the transactions window.
  3. Click Yes.
  4. Click the Add Shares entry that is dated 2/25/2005, and then click Delete under the transactions window.
  5. Click Yes.

Method 3: Record the second spin-off

  1. On the Icon bar, click Portfolio.
  2. In the Common Tasks pane, click Record a special activity, and then click Record a spin-off.
  3. In the Company organizing the spin-off list, click Stock 1.
  4. In the New company box, type Stock 1-B, and then click Next two times.
  5. In the Date of spin-off box, type 2/25/2005 or click 2/25/2005, and then click Next.
  6. In the shares of Stock 1-B box, type 1, and then click Record the cost basis for my shares of Stock 1-B as a percent of the cost basis of Stock 1.
  7. In the Percent should be box, type 30, and then click Next.
  8. Click Finish, and then click OK.
  9. Quit Money.

Method 4: Add an assistance transaction

To add an assistance transaction, use the following methods in the order that they appear in:
  • Record the first spin-off. To do this, follow the steps that are listed in Method 1.
  • Add an Add Shares transaction that has a date that is one day before the spin-off.
  • Record the second spin-off. To do this, follow the steps that are listed in Method 3.
To add an Add Shares transaction that has a date that is one day before the spin-off, follow these steps:
  1. On the Portfolio page, expand Stock 1.
  2. Under the "Investment information for Stock 1" window, click New.
  3. In the Date list, click 2/24/2005.
  4. In the Activities list, click Add Shares.
  5. On the right, in the Quantity box, type 6000, the original quantity of shares.
  6. In the Price box, type 7.15, the new value of the share after the first spin-off.
  7. Click OK.

Method 5: Remove the three additional transactions

  1. On the Portfolio page, expand Stock 1.
  2. In the "Investment information for Stock 1" window, click the Add Shares transaction for Stock 1 for the previous date, 2/25/2005.
  3. Under the "Investment information for Stock 1" window, click Delete.
  4. In a similar manner, remove the Add Shares and the Remove Shares transaction entries for Stock 1 that exist for the first spin-off.
  5. Quit Money.

Method 6: Change the spin-off date

To change the spin-off date, use the following methods in the order that they appear in:
  • Record the first spin-off. To do this, follow the steps that are listed in Method 1.
  • Record the second spin-off on the following day.
  • Manually correct the second spin-off entries.
To record the second spin-off on the following day, follow these steps:
  1. Start Money.
  2. On the Icon bar, click Portfolio.
  3. In the Common Tasks pane, click Record a special activity, and then click Record a spin-off.
  4. In the Company organizing the spin-off list, click Stock 1.
  5. In the New company box, type Stock 1-B, and then click Next two times.
  6. In the Date of spin-off box, type 2/26/2005 or click 2/26/2005, and then click Next.
  7. In the shares of Stock 1-B box, type 1, and then click Record the cost basis for my shares of Stock 1-B as a percent of the cost basis of Stock 1.
  8. In the Percent should be box, type 30, and then click Next.
  9. Click Finish, and then click OK.
To manually correct the second spin-off entries, follow these steps:
  1. On the Portfolio page, expand Stock 1.
  2. In the "Investment information for Stock 1" window, you will see three entries for the second spin-off on 2/26/2005.
  3. Click the first entry for the date 2/26/2005.
  4. Under the "Investment information for Stock 1" window, click Edit.
  5. In the Date list type 2/25/2005 or click 2/25/2005, and then click OK.
  6. Click Yes to acknowledge the warning.
  7. Change the remaining two entries for 2/26/2005, in a similar manner.
  8. Quit Money.

REFERENCES

For more information about how to handle spin-offs in Microsoft Money, click the following article number to view the article in the Microsoft Knowledge Base:

179585 Money: How to handle stock mergers or spin-offs in Money

Modification Type:MajorLast Reviewed:4/13/2005
Keywords:kbtshoot kbprb KB893720 kbAudEndUser
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