Vanguard account shows cash balance after sale

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I sold all of one fund I held in a Vanguard account.   Quicken shows the sale transaction but continues to show the amount as 'cash' and includes it in the account balance even though it has been transferred to a bank account and then amount is no longer included in the online view of my account.    How can I get quicken to update to match, showing the cash and that fund is gone?  It goes through the sync/update process with no errors.
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Les Mikesell

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Posted 7 months ago

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UKR, SuperUser

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If the money was transferred out, then how was that recorded in Quicken? You're probably missing a "Cash transferred out of account" transaction in your investment register.
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gmalis1

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And Vanguard would have no clue how you dispersed the cash from the sale of your fund.

So therefore, it is NOT a downloadable transaction, but one you'll have to manually enter.  

Create a new transaction in your Vanguard register, use "Cash transferred out of account" (as noted above) and select your bank account.  

I prefer to use the ENTER TRANSACTIONS button on the top left of the register.  It's an easier more concise way of entering investment transactions than just entering it into the register directly. 
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Les Mikesell

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Vanguard does know how I dispersed the cash, since they did the ACH transfer to my bank account - and viewing in their web interface it shows the correct transactions and totals.   However, in Quicken, the 'holdings' view shows 'cash' with the amount they are no longer holding.

Quicken already picked up the inbound transaction to the bank account.  Won't adding a transfer manually duplicate this amount?
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UKR, SuperUser

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You said: "Quicken already picked up the inbound transaction to the bank account"

What is the category assigned to this transaction in your bank account?
If done correctly it should be a transfer from your Vanguard account, e.g.
Category = [Vanguard]    <-- the name of your Vanguard account register in brackets

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Tom Young, SuperUser

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"Vanguard does know how I dispersed the cash..."

The download from Vanguard only deals with the "money out" aspect of the transaction, not the "money in" aspect.  That latter transaction gets reported to you by the receiving bank or financial institution. 

And, likewise, even though the receiving institution "knows" that Vanguard sent the money the download from the receiving bank doesn't deal with the "money out" transaction. 

You are responsible for connecting the separate "money out" and "money in" transactions by how you record the transaction in Quicken.

What you should have done is record the TRANSFER of cash from Vanguard to your bank Account in Quicken when you ordered the transfer.  The download from Vanguard of the "money out" transaction would then "match" with your previous entry in your Vanguard Account.  A day or two later the download from the bank of the "money in" transaction would then also "match" with your previous entry in your bank Account.
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Les Mikesell

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In the bank transaction it shows payee 'Vanguard Sell Investment" but the Category is blank.    Was I supposed to have done something to connect the accounts?  I think the totals worked right when the money went the other direction to buy the funds.
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Les Mikesell

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"What you should have done is record the TRANSFER of cash from Vanguard to your bank Account in Quicken when you ordered the transfer."

How would that even be possible?  When you sell a mutual fund you don't know ahead of time what price you will receive.

And in any case, Vanguard does not show I am "holding" cash now.  Why does Quicken not update to match?
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Tom Young, SuperUser

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"In the bank transaction it shows payee 'Vanguard Sell Investment" but the Category is blank.    Was I supposed to have done something to connect the accounts? "

Yes.  In the Category box you need to provide the Quicken Account that the money came from: [Name of Vanguard Account].

" I think the totals worked right when the money went the other direction to buy the funds."

I assure you that it didn't "work right" because the bank included that [Name of Vanguard Account] in it's download.  You may have had a memorized transaction that had that Account as the offset or you may have put it in yourself, but the bank certainly has no idea what name you are using in your own Quicken file for that Vanguard Account.  All the bank knows is what you see: 1) The payer's name and 2) The dollar amount.  It CAN'T possibly know how to account for that deposit; that's your job.

"How would that even be possible?  When you sell a mutual fund you don't know ahead of time what price you will receive."

I assumed you initiated the transfer and knew the amount, but that's irrelevant.  At SOME POINT you knew the amount of cash realized and knew that it was going to be transferred to your bank.  At that point you make the Quicken entry.

"And in any case, Vanguard does not show I am "holding" cash now.  Why does Quicken not update to match?

You're the human intelligence that's supposed to make the match.  Because of "downloads" and "memorized transactions" people are somehow lulled into the notion that the financial institutions and Quicken are supposed to do all their "accounting" for them and that's just not the case.
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Les Mikesell

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The balances and totals did in fact show the correct amounts when I transferred the money _to_ Vanguard.   That is, the bank balance went down and the Vanguard total went up.   Maybe this wasn't "correct" in the accounting sense of connecting the accounts, but it was correct in the sense of showing the balance of what each institution holds.

What I am asking is why Quicken does not show the correct balance at Vanguard now.   If it increased the balance when money transferred in, why does it not decrease it when money transfers out?    Yes, I was lulled into the notion that Quicken would correctly track a balance that an institution says I have.  That's why I bought it.   I don't care about the transactions being connected but I want the balance to match what the institution it is syncing with says is mine.   I'm not 'holding' cash at Vanguard, they don't say I am, but Quicken says I am.   What is the point of syncing if the sync does not pick up the current status?
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Tom Young, SuperUser

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"What is the point of syncing if the sync does not pick up the current status?"

I have no idea what happened here, it could very well be human error, but I know how to fix it.  Over in the bank Account, in the Category box you need to provide the Quicken Account that the money came from: [Name of Vanguard Account].
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Les Mikesell

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Great, Thanks!  That generated an 'Xout' transaction in the Vanguard account that cleared the cash holding.
 
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gmalis1

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If you would have followed my instructions 2 days ago...you wouldn't have needed this prolonged conversation.  
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Les Mikesell

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It seemed easier to select the existing bank transaction - would I have been able to pick that going the other way?   But I still don't understand why Quicken is happy to show my correct bank balance when it doesn't match the transactions up, but showed the incorrect Vanguard balance in that situation.
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gmalis1

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Either way works.  I usually do the transfer from the investment (Vanguard account) because it takes at least a day or two for my bank to clear the transaction in my checking account.

But, you could do it either way...that's why it's a TRANSFER.  Transfers are a "two way street".  You enter it in one register and the other half of the transfer appears in the other register...without having to enter it twice.

And once again you don't seem to understand the concept of transfers.

The incorrect balance in your Quicken Vanguard account has to do with the fact that once you sold the shares, that sale winds up as cash.  YOU did nothing in Quicken to tell it what to do with the cash.  If you would have created a transfer TO your checking account FROM your Vanguard account, the cash would be accounted for, your Vanguard balance would be correct and when the check (or EFT) from Vanguard to your checking account cleared it would then be matched to that half of the transfer.

You have to look at Quicken and follow the "real life" flow, which somehow you seem to understand THAT concept.

1 You sold shares of a fund

2 You received cash from the sale

3 Vanguard sent the money from it's account to your checking account. 

So...how difficult is that to follow?  Vanguard downloaded the sale for you, but it has ZERO clue where you want that money to go.  It knows you took the money, but doesn't have any clue which Quicken account it's going to.

And your checking account has no idea that this is a transfer of funds from Vanguard.  All it knows is that it got some money from Vanguard.  It doesn't care if it's a transfer of funds or money that came down from the heavens (doubtful).  All your bank knows is that Vanguard sent it some money.

As mentioned above, Quicken is not hands-off financial software.  As a matter of fact, it's very hands-on.  You have to review transactions for accuracy for amount, date, payee and category.  And since a transfer is a special category in Quicken, you have to review and occasionally change things to fit what actually happens in the real world.

If your looking for more hands-off, then use Mint.  You basically have to do nothing there except pick out a category.  
(Edited)