FAQs for Split Transactions

Can I use the Corporate Action wizard to enter split transactions for manually entered transactional accounts?

You cannot use the Split/Reverse Split Wizard for manually created transactional accounts. However, you can use it for accounts imported through the Microsoft Excel - Transactions interface. If you have a manually created transactional account, you can establish a Microsoft Excel account mapping so that the Corporate Action Wizard can be used. A disadvantage is that you will not be able to reconcile these accounts as you can in the import blotter. Click here for steps on how to create a Microsoft Excel account mapping.

Where can I find information for the split?

Here are a few helpful places to search for information on corporate actions:

Chicago Board Options Exchange - http://www.cboe.com/tradtool/contracts.aspx
Schwab Performance Technologies - https://schwabpt.com/resources/actions/
You can also search on the company's Web site under Investor Relations.
Most custodians will also display the split ratio on their Web site.

What should I do with the split transactions if I decide to wait to process the split in Morningstar Office?

If you decide not to continue with posting the split transactions due to missing information, you should still export all transactions related to the split into an Excel spreadsheet (for later reference), and then delete these transactions from Office.

When you reconcile this data, you will see out of balances related to the split. These can be ignored and you can continue with the posting process. These items will remain out of balance until the split is handled.

If you do not want to continue with the import process while having out of balances, you can delay posting your data until you are able to use the Split/Reverse Split Wizard and you have reconciled successfully.

Can I post my data if I haven't completed the Split/Reverse Split Wizard, or if I have out of balance errors?

You can still post transactions with out of balance errors. The shares out of balance will remain out of balance until the correct transactions are generated to achieve the correct number of shares in the account.

What if Morningstar's Effective Date is different from my custodian's?

Morningstar uses the date the split took place as the Effective Date for the corporate action. All generated transactions are given this date. Sometimes you will see a different date listed at the custodian for these transactions due to processing differences. This field is editable within the Split/Reverse Split Wizard if you want to change it.

Note: The date of the split transaction must correlate to the date that the price changed (increase/decrease). The price change date may differ depending on whether Morningstar pricing or imported pricing is being used.

What if this corporate action affects multiple accounts and I don't want to enter the Cash-in-Lieu amount individually for each account later?

The price needed for the Cash-in-Lieu field in the split wizard can be calculated using the following steps:

Pick the account with the largest number of shares that received a Cash-in-Lieu transaction.
Use the amount from the Cash-in-Lieu transaction and divide by the fractional share from the post-split share amount (be sure to use the entire number after the decimal place).
Enter this price in as the Cash-in-Lieu price. Be sure to use all of the trailing decimal places.

You will need to verify the transactions afterwards for accuracy. Be sure the Net Amount and Gross Amount fields for the transactions have only two digits after the decimal, as this could affect your Cash balance. This can be done by clicking in these fields; any additional digits beyond the decimal will be displayed.

What if I have a Cash out of balance for more than the Cash-in-Lieu amount?

This usually means the Cash-in-Lieu has been accounted for twice. You generated a Sell transactions for the fractional share using the Split/Reverse Split Wizard, but the custodian also recorded a Cash-in-Lieu transaction. The custodian usually sends this transaction as a Distribution for the security, or a Deposit into Cash (Example: Fidelity sends the Cash-in-Lieu as an out of pocket deposit. TDA and Schwab send them as distributions.) If you have not posted this transaction, go to the Transactions blotter and look for the transaction sent from the custodian. Note: You can sort the Account Number column by double-clicking on that column header, or you can search by account number using the Search for functionality at the top left of the screen.

Delete the Cash-in-Lieu transaction. If it shows as a Distribution, delete that item. (Morningstar automatically deletes the offsetting Cash transaction.)

If the transaction came in as a Deposit into Cash, verify that the transaction is not linked to any other transaction by ensuring the Offsetting Cash Security field is blank, and then delete it. Be sure not to delete any Money Market transactions.