Article ID: 174999
Article Last Modified on 1/20/2007
APPLIES TO
- Microsoft Money 2007 Deluxe
- Microsoft Money 2007 Home & Business
- Microsoft Money 2007 Premium
- Microsoft Money 2006 Deluxe
- Microsoft Money 2006 Premium
- Microsoft Money 2006 Small Business
- Microsoft Money 2006 Standard
- Microsoft Money 2005 Deluxe Edition
- Microsoft Money 2005 Premium Edition
- Microsoft Money 2005 Small Business Edition
- Microsoft Money 2005 Standard Edition
- Microsoft Money 2004 Deluxe Edition
- Microsoft Money 2004 Premium Edition
- Microsoft Money 2004 Small Business Edition
- Microsoft Money 2004 Standard Edition
- Microsoft Money 2003 Deluxe Edition
- Microsoft Money 2003 Deluxe and Business Edition
- Microsoft Money 2003 Standard Edition
- Microsoft Money 2002 Standard Edition
- Microsoft Money 2002 Business & Personal Edition
- Microsoft Money 2002 Deluxe and Business Edition
- Microsoft Money 2001 Standard Edition
- Microsoft Money 2001 Business and Personal Edition
- Microsoft Money 2001 Deluxe and Business Edition
- Microsoft Money 2000 Standard Edition
- Microsoft Money 2000 Business & Personal Edition
- Microsoft Money 99 Standard Edition
- Microsoft Money 98 Standard Edition
- Microsoft Money 97 Standard Edition
- MSN Money
- MSN Money Plus
This article was previously published under Q174999
SUMMARY
MSN Investor and Microsoft Money may calculate different cost basis values for your investments.
MORE INFORMATION
MSN Investor uses FIFO (First In First Out) to calculate the cost basis for your remaining investment shares. Microsoft Money also normally uses FIFO. However, Money can also use Average Cost. Additionally, Microsoft Money 99 and later can also use Lots.
The example in the following table shows the difference between the FIFO and Average Cost accounting methods:
{|
! Date ! Activity ! Amount ! Cost ! Avg. Cost ! Average Cost Basis ! FIFO Cost Basis |- | 1/1/97 | Buy | 10 | $10 | $10 | $100 | $100 |- | 2/1/97 | Buy | 10 | $20 | $15 | $300 | $300 |- | 3/1/97 | Buy | 10 | $30 | $20 | $600 | $600 |- | 4/1/97 | Buy | 10 | $40 | $25 | $1000 | $1000 |- | 5/1/97 | Sell | 30 | $40 | $25 | $250 | $400 |}
When you use the FIFO accounting method, you sell the first securities you purchased (in this example, the securities you purchased in the first three transactions). The program then uses the earliest cost for the remaining securities to calculate the cost basis (in this example, the program uses the cost for the securities you purchased purchased on 4/1/97).
Money and Investor both use the following formula when they use the FIFO method:
Cost X Amount = Cost Basis
The following example of a FIFO equation uses the information from the previous table:
$40 X 10 = $400
If you configure Money to use the Average Cost method, it uses the following formula:
Avg. Cost X Amount = Cost Basis
The following example of an Average Cost equation uses the information from the previous table:
$25 X 10 = $250
Money 2000 and later versions let you associate a "price" with transfered shares when you use the Add Shares feature. This price, if provided, is used in Money's Cost Basis calculations.
For more information, click the following article number to view the article in the Microsoft Knowledge Base:
164450 How to view or add stocks that are purchased at different prices in MSN Money
Additional query words: w_money money2k 97 6.0 7.0 8.0 9.0 m2001 pizza INV mutual funds
Keywords: kbinfo kbmoneyinvest kbonline KB174999
