What to do when the transferred amount across 2 accounts decreases due to bank transfer fee?
I hope I can describe my situation clearly. Here we go...
Every time I buy mutual fund, I transfer from the "Investment" category in the budget account to the tracking account. Every time I sell it, I transfer it back to "To Be Budgeted" category in the budget account.
Buying is easy. Selling, however, incurs a small amount of bank transfer fee, causing the amount transferred from the tracking account decreases by the time it arrives at the budget account. Let's say I sell IDR 100,000 out of IDR 2,000,000 mutual fund I own. From tracking account I transfer IDR 100,000 so the balance becomes IDR 1,900,000. At budget account IDR 100,000 arrives, right? In reality, however, I receive IDR 96,500.
What's the best way to deal with the IDR 3,500 bank transfer fee so that my budget account accurately reflects my bank balance?
I just tested this in a fake budget, but you might want to play around with it before you do it:
In the checking account, create a split transaction with +96,500 into TBB
Split 1: -3,500, category “bank fees”
add a transfer
Split 2: +100,000 transfer: investment account
You have to do it from the on-budget account because otherwise you can’t add a category.Reply
Yeah, if it were me I would just record the net amount in. The fee is basically money already spent off-budget. If this is an expense you want to track on-budget the account should probably be on-budget as well :(.
But I've done some pretty crafty splits in the past so maybe there IS a way to do it... if so someone will figure it out.Reply
I would enter a transaction in the tracking account for the fee (no category) and a transfer in the actual amount that arrives in the on-budget account.
But....if you want to do it with a split, you can enter the inflow and fee in a split: topline of the split is the net inflow. First split, the gross transfer, second split the bank fees. Both splits categorized to Inflow: TBB.Reply