Our Valuation Date is the same date as our monthly meeting which occurs on the 2nd Friday of the month. Normally, this is the date we use for withdrawals. The process is pretty clean when a withdrawal has to do with cash because we simply sell the stock and pay the partner based on their value consistent with the valuation date. However, how do you handle the process when transferring stock on a full withdrawal? If the valuation date is on a Friday, transferring stock won't occur until the following Monday which could impact the partner's valuation amount, it could lower or higher. For example, the full withdrawal value on Friday could be $80k. However, on Monday, due to market fluctuations the amount could be $82k. The brokerage will show a transfer of $82k to the partners personal brokerage but bivio's withdrawal report will indicate $80k due to the valuation date. Do we change the valuation date to the Broker's transaction date? Any suggestions would be greatly appreciated!
ira smilovitz on
The valuation date sets the value and the components of the withdrawal. Any change in stock price between the valuation date and the actual transfer date belongs to the withdrawing member - whether the price goes up or down.
Our Valuation Date is the same date as our monthly meeting which occurs on the 2nd Friday of the month. Normally, this is the date we use for withdrawals. The process is pretty clean when a withdrawal has to do with cash because we simply sell the stock and pay the partner based on their value consistent with the valuation date. However, how do you handle the process when transferring stock on a full withdrawal? If the valuation date is on a Friday, transferring stock won't occur until the following Monday which could impact the partner's valuation amount, it could lower or higher. For example, the full withdrawal value on Friday could be $80k. However, on Monday, due to market fluctuations the amount could be $82k. The brokerage will show a transfer of $82k to the partners personal brokerage but bivio's withdrawal report will indicate $80k due to the valuation date. Do we change the valuation date to the Broker's transaction date? Any suggestions would be greatly appreciated!
Barbara Preneta on
That makes sense.
We just transferred a chunk of cash to the bank from Charles Schwab, in preparation for writing checks to members requesting
mostly cash for their withdrawals as we disband. Bivio has now flagged this as "unassigned debt." Should this be identified as "account transfer?"
The valuation date sets the value and the components of the withdrawal. Any change in stock price between the valuation date and the actual transfer date belongs to the withdrawing member - whether the price goes up or down.
Our Valuation Date is the same date as our monthly meeting which occurs on the 2nd Friday of the month. Normally, this is the date we use for withdrawals. The process is pretty clean when a withdrawal has to do with cash because we simply sell the stock and pay the partner based on their value consistent with the valuation date. However, how do you handle the process when transferring stock on a full withdrawal? If the valuation date is on a Friday, transferring stock won't occur until the following Monday which could impact the partner's valuation amount, it could lower or higher. For example, the full withdrawal value on Friday could be $80k. However, on Monday, due to market fluctuations the amount could be $82k. The brokerage will show a transfer of $82k to the partners personal brokerage but bivio's withdrawal report will indicate $80k due to the valuation date. Do we change the valuation date to the Broker's transaction date? Any suggestions would be greatly appreciated!
Lucile Sorrells on
We just transferred money from Schwab to our bank and had not trouble.
The valuation date sets the value and the components of the withdrawal. Any change in stock price between the valuation date and the actual transfer date belongs to the withdrawing member - whether the price goes up or down.
Our Valuation Date is the same date as our monthly meeting which occurs on the 2nd Friday of the month. Normally, this is the date we use for withdrawals. The process is pretty clean when a withdrawal has to do with cash because we simply sell the stock and pay the partner based on their value consistent with the valuation date. However, how do you handle the process when transferring stock on a full withdrawal? If the valuation date is on a Friday, transferring stock won't occur until the following Monday which could impact the partner's valuation amount, it could lower or higher. For example, the full withdrawal value on Friday could be $80k. However, on Monday, due to market fluctuations the amount could be $82k. The brokerage will show a transfer of $82k to the partners personal brokerage but bivio's withdrawal report will indicate $80k due to the valuation date. Do we change the valuation date to the Broker's transaction date? Any suggestions would be greatly appreciated!
Barbara Preneta on
We had no trouble moving it, but I was confused about how it was labelled. Apparently our treasurer just has to add something
The valuation date sets the value and the components of the withdrawal. Any change in stock price between the valuation date and the actual transfer date belongs to the withdrawing member - whether the price goes up or down.
Our Valuation Date is the same date as our monthly meeting which occurs on the 2nd Friday of the month. Normally, this is the date we use for withdrawals. The process is pretty clean when a withdrawal has to do with cash because we simply sell the stock and pay the partner based on their value consistent with the valuation date. However, how do you handle the process when transferring stock on a full withdrawal? If the valuation date is on a Friday, transferring stock won't occur until the following Monday which could impact the partner's valuation amount, it could lower or higher. For example, the full withdrawal value on Friday could be $80k. However, on Monday, due to market fluctuations the amount could be $82k. The brokerage will show a transfer of $82k to the partners personal brokerage but bivio's withdrawal report will indicate $80k due to the valuation date. Do we change the valuation date to the Broker's transaction date? Any suggestions would be greatly appreciated!
ira smilovitz on
Barbara,
Yes the unidentified debit should be classified as a transfer. When you complete the withdrawal entries, you will pay the cash component from the bank account. The club's total cash holdings will be reduced at that time.
The valuation date sets the value and the components of the withdrawal. Any change in stock price between the valuation date and the actual transfer date belongs to the withdrawing member - whether the price goes up or down.
Our Valuation Date is the same date as our monthly meeting which occurs on the 2nd Friday of the month. Normally, this is the date we use for withdrawals. The process is pretty clean when a withdrawal has to do with cash because we simply sell the stock and pay the partner based on their value consistent with the valuation date. However, how do you handle the process when transferring stock on a full withdrawal? If the valuation date is on a Friday, transferring stock won't occur until the following Monday which could impact the partner's valuation amount, it could lower or higher. For example, the full withdrawal value on Friday could be $80k. However, on Monday, due to market fluctuations the amount could be $82k. The brokerage will show a transfer of $82k to the partners personal brokerage but bivio's withdrawal report will indicate $80k due to the valuation date. Do we change the valuation date to the Broker's transaction date? Any suggestions would be greatly appreciated!
Carole Jansen on
Just change it to "account transfer" and verify that the accounts "to and from" are accurate in Bivio. Just a bookkeeping issue, not complicated.
The valuation date sets the value and the components of the withdrawal. Any change in stock price between the valuation date and the actual transfer date belongs to the withdrawing member - whether the price goes up or down.
Our Valuation Date is the same date as our monthly meeting which occurs on the 2nd Friday of the month. Normally, this is the date we use for withdrawals. The process is pretty clean when a withdrawal has to do with cash because we simply sell the stock and pay the partner based on their value consistent with the valuation date. However, how do you handle the process when transferring stock on a full withdrawal? If the valuation date is on a Friday, transferring stock won't occur until the following Monday which could impact the partner's valuation amount, it could lower or higher. For example, the full withdrawal value on Friday could be $80k. However, on Monday, due to market fluctuations the amount could be $82k. The brokerage will show a transfer of $82k to the partners personal brokerage but bivio's withdrawal report will indicate $80k due to the valuation date. Do we change the valuation date to the Broker's transaction date? Any suggestions would be greatly appreciated!