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Updated documentation to explain how to tie dividends received in cas…
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…h to the appropriate stock holding.
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DanielDodson authored and gjanssens committed Aug 2, 2014
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15 changes: 8 additions & 7 deletions guide/C/ch_invest.xml
Expand Up @@ -1801,19 +1801,20 @@ Income
<title>Dividends in Cash</title>

<para>If the dividend is presented as cash, you should record the
transaction directly in the asset account that received the money, as
income from <emphasis>Income:Dividends</emphasis> with a note mentioning from which
commodity it was derived. There is no simple way to show this transaction
from within the stock or mutual fund account itself.</para>
transaction in the asset account that received the money, as income
from <emphasis>Income:Dividends</emphasis>. Additionally if you want to tie
the cash dividend to a particular stock holding then add a dummy
transaction split to the stock account with quantity 0 price 1 value 0.</para>

<para>As an example consider the following; a purchase of IBM stock with the dividends
deposited as cash into the <emphasis>Broker</emphasis> Account.</para>
<para>As an example consider the following; the dividends
deposited as cash into the <emphasis>Broker</emphasis> Account with a tie
to the stock account.</para>

<screenshot id="invest-dividendcash1">
<mediaobject>
<imageobject>
<imagedata fileref="figures/invest_dividendcash.png"
format="PNG" srccredit="Dave Herman" ></imagedata>
format="PNG" srccredit="Daniel Dodson" width="510px"></imagedata>
</imageobject>

<textobject>
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