When that is the case we arrange to send a Fed Funds Wire from our Bank to the appropriate brokerage account.

Money is not DUE until settlement date, so sometimes we have one, two three transactions before we send in payment via wire.

Also we sometimes send MORE money than the cost of the stock.

So that's the situation - sometimes in our current software, Quicken, we have accounts that have a negative balance for one two or three days until a balancing cash trasnfer is made, and that cash transfer may be for MORE than the purchase price of the securities.

Can your program deal with this?

Can we enter a buy of a stock, have a negative balance, and then wait to balance it out with a cash trasfer from our checking account for one two or three days?

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Originally posted by FN_User:
Can your program deal with this?

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Of course. Once you've set up your broker cash account, FN treats it like any other cash account.

Purchases of securities are handled very much like checks in a checking account. Sales of securities and dividend income are handled very much like ordinary deposits in a checking account.

This means that your broker cash account has a cash balance. This cash balance may be positive, zero, or negative, depending on the transactions.

quote:

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Originally posted by FN_User:
Money is not DUE until settlement date, so sometimes we have one, two three transactions before we send in payment via wire.

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Financial Navigator can handle this with no problem at all. Transactions are posted on their settlement date, which is the date the funds come into (sales) or leave (purchases) the broker cash account. Note that FN records both the settlement date, which is used to keep track of cash in the brokerage account, AND the transaction (trade) date, which is used to keep track of the holding period for capital gains purposes.