SEC Class Action PMT

Kenneth J.(Kavula JntLivTr 4/2/2015) Kavula TTEE on

Can anyone tell me how to enter an SEC Class Action PMT into
the accounting system for my investment club?

Vickie Rabourn on

I had no idea what you meant by PMT, but was curious, so looked it up. Duh! "Payment" See below for ChatGPT's answer to my question (What does he mean?) and yours.

Btw, for about a year, I've asked AI to put together our personalized monthly reports and ask it to examine our holdings, give recommendations, etc. It's amazing. I especially like it when I ask for side by side comparisons.

Read to the end!

The person is asking how to record a securities class-action settlement payment in their investment club's accounting software.

Here's what they probably mean:

SEC refers to the Securities and Exchange Commission, although the payment may actually come from a private securities class-action lawsuit rather than the SEC itself.
Class Action PMT means class-action payment.
Accounting system means the software their investment club uses to track investments, income, expenses, and members' ownership interests.

Most likely, their club owned shares of a company that was involved in a securities lawsuit. The club subsequently received a settlement check or deposit, possibly long after selling the stock.

What they're really asking: "How do I enter this money into our investment club's books so that our cash balance, income, and tax reporting are correct?"

Since your investment club uses Bivio, I found something particularly helpful: Bivio has published instructions for exactly this situation.

How to enter it in Bivio

Go to Accounting -> Investments -> Income.

Bivio's instructions distinguish two situations:

Situation	How to record payment
Club still owns the stock	Return of Capital
Club no longer owns the stock	Long-Term Capital Gain

If AccountSync imported the deposit as an "Unidentified Credit," Bivio instructs users to delete that entry and enter the transaction manually to avoid duplication.

Here's the original Bivio guide: Class Action Lawsuit Settlement Checks.

One caution: These are Bivio's published bookkeeping instructions, not a universal tax rule. The appropriate tax treatment can depend on what the settlement compensates and whether it includes interest.

Bottom line: The person is almost certainly asking about a securities lawsuit settlement that their club received, not how to record a payment from one of its members. And Bivio has an answer specifically addressing it. On Fri, Nov 13, 2026 at 12:55 PM Kenneth J.(Kavula JntLivTr 4/2/2015) Kavula TTEE via bivio.com <user*14645100001@bivio.com> wrote: Can anyone tell me how to enter an SEC Class Action PMT into the accounting system for my investment club?

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