Posting Sold/Unsold Stock to GL (FE Integration)

Hi,

I have found this to be confusing for a lot of people, so hopefully I can articulate this well enough in a post.

The GL distribution is mapped on a Fund record. You do need to map each Fund separately though you can use “Copy From” on the GL distribution tab and copy from a template or an existing Fund. You do not need to map every gift type, and you can map the same gift type to different GLs if you also use Subtype. That probably won't be an issue here though.

One cause for confusion is that the gift types on the GL distribution tab are a little confusing compared to the Gift Types that we see on gift records. Almost every organization I've worked for or consulted with has sold stock immediately and only entered the value of the stock on a constituent's record. The gift type was always “Stock/Property”, and it was mapped to “Sale Stock/Property”.

If you want to add the stock when you receive it and then sell it “within” RE so that you can separate gain or loss and broker fees, you would enter it as "Stock/Property" first. When you sell it, you would open the Stock/Property gift record, then go to Gift | Sell Stock/Property on the menu bar. You add the sale amount, date, and broker fees (among other things I can't remember) and when you complete the sale, the gift type will change to “Stock/Property (Sold)”. If you have also mapped Stock/Property (Gain), Stock/Property (Loss), and Stock/Property Broker Fee, then the money will distribute to the proper GL accounts.

I hope that makes sense. I have only had one client ever do that, and they started the process while I was consulting there so I don't know how well it worked for them long term. As I mentioned, every other organization I've been with over the years has sold stock immediately upon receipt and just booked the final sale amount in RE.

Karen

I think there are two options:

Mark the Stock/Property gift as “do not post” when you enter it. I tried this, sold it and added broker fees too. Even though the gift changes to “Stock/Property (Sold)” and the Post Status stays at “do not post”, I can view the sale information and it shows that it posted today.

Another option might be to NOT map the “Unsold Stock/Property” gift type. I might have misspoken in my first response about that mapping. The organizations I've worked with always mapped “Unsold Stock/Property” and entered the gift as “Stock/Property” because they did not do the sale in RE.

In my example, I failed to check mapping ahead of time and only did after I had posted the gift. The only gift type that was mapped was “Unsold Stock/Property”.

I think I lean toward the first option only, but don't have an integrated instance where I can test it fully. It seemed to work from the RE side, but I have no way of seeing it in FE.

Not a very methodical or complete test, but I hope it is helpful!

Karen

Speaking as an accountant this is what I would expect the GL post report to look like:


Recording of stock gift

1,000 Stock GL account Number

1,000 Donation Revenue GL Account Number


Recording of stock sale (per your specks)

980 Cash GL Account Number

10 Fees GL Account Number

10 Loss on Stock GL Account Number

1,000 Stock GL Account Number


My assumption is when you put in the sold amount RE calculates the gain/loss. If you add a fee amount, it will be netted with the gain/loss to calculate cash.

If you received $990 cash then you either had no fees or had no loss or had a gain and higher fees.

This is how an accountant would expect the GL post to look like.