Hello,
We received some stock which sold for higher than what it was when we got it. How do I go about processing the amount to pay off a pledge and also place the gain on the stocks into the right place financially (since we don't want to record the extra as a gift or a contribution made by a person)
Thanks!
We have a payment method for Gain/Loss that go to the appropriate Gain/loss GL. So for instance, if the pledge was for $10,000 and stock came in with an original value of $10,000, but when we sold it is was valued at $10,100, we would enter a payment method of Stock Proceeds (cash gl) for $10,100 and then a payment method of Gain/Loss for -$100. This nets to a payment of $10,000 and everything goes to the gls they are supposed to.
Hey Brian, I have an additional question. I attempted to enter a pledge of $10,000 then place a payment to say cash of $10,110 and it wouldn't let me since the payment was greater than the amount. Do you know if this is some setting / configuration issue?
No, this is not something that can be changed. If the payment on a pledge is greater than the original pledge amount, you will need to either adjust the original pledge to the new amount (only do this if it was booked in the current fiscal year!) or book a new gift with the additional payment. In your example above, a second gift would be booked for $110. Hope that helps!