How to Track Settlement Dates

In financial trading, there is often a delay between the Trade Date (when you agreed to the deal) and the Settlement Date (when the cash actually moves).

• Trade Date: You bought the stock today. You own it now.
• Settlement Date: The cash leaves your account in 2 days (T+2).

Beancount generally uses a single date per transaction. This guide shows you how to track both using an intermediate “Pending” account.

The Strategy

Instead of moving cash directly from Assets:Checking to Assets:Stock, we move it through Assets:Pending:Transfers.

1. On Trade Date: Record the stock purchase and a debt to the pending account.
2. On Settlement Date: Record the cash movement clearing the debt.

Example: Buying Stock

You buy 10 shares of AAPL for $150 on June 1st. The cash will settle on June 3rd.

Step 1: The Trade (June 1)

You legally own the stock now. You “owe” the cash to the settlement clearing house.

2024-06-01 * "Buy AAPL"
  Assets:Brokerage:AAPL         10 AAPL {150.00 USD}
  Assets:Pending:Transfers    -1500.00 USD

• Stock: Account increases (You own it).
• Pending: Account decreases (You owe money).

Step 2: The Settlement (June 3)

The bank actually transfers the money.

2024-06-03 * "Settlement for AAPL"
  Assets:Pending:Transfers     1500.00 USD
  Assets:Checking             -1500.00 USD

• Pending: Account returns to zero.
• Checking: Cash leaves your bank.

Using the pad Directive

If you import your bank data automatically, your bank will only show the transaction on June 3rd. Your brokerage might show the trade on June 1st.

You can use pad to fill the gap automatically without manually writing the settlement transaction every time.

1. Trade (From Brokerage Importer):

   2024-06-01 * "Buy AAPL"
     Assets:Brokerage:AAPL         10 AAPL {150.00 USD}
     Assets:Pending:Transfers
   

   (Note: We leave the second leg empty or let the importer calculate it)

2. Cash (From Bank Importer):

   2024-06-03 * "ACH Transfer"
     Assets:Checking             -1500.00 USD
     Assets:Pending:Transfers
   

3. Pad Directive: If you don’t have the exact matching transaction, you can tell Beancount to “fill the gap” in the Pending account.

   2024-06-02 pad Assets:Pending:Transfers Equity:Timing-Differences
   

   Use pad with caution! It effectively “invents” a transaction to make balances match.

Benefits

• Accuracy: Your stock holdings are correct on the trade date (important for dividends and voting rights).
• Reconciliation: Your bank balance matches the bank statement dates (settlement dates).