In addition to supporting Cash Holdings, you can now also create a settlement account in Parqet.

We've summarized why settlement accounts are so powerful and how to activate them in Parqet. If you're a fan of video walkthroughs, you can watch Parqet founder Sumit create a settlement account.

How a Settlement Account Works

The settlement account in Parqet works exactly like a settlement account with your broker. It serves to display various payment flows (purchases, dividends, taxes, etc.) in a simplified and consolidated way, so you get a better overview of your real wealth. For each of your securities activities, a counter-booking is automatically created to the settlement account.

An example: You receive a dividend for your shares in a distributing ETF and enter this dividend activity in Parqet. Without using a settlement account, this dividend is not shown as part of your portfolio value, since the portfolio value only includes the securities currently held. The entered dividend is therefore not added to your portfolio value.

The same applies to sales of stocks, which are another form of realized gains. Once you sell a security, the realized gains or losses are no longer part of the portfolio value.

With a settlement account, however, these realized gains (dividends, sales) are included in the portfolio value thanks to the automatic counter-booking. The payout of your gains better reflects what actually happens in your account in reality.

The settlement account behaves the same way for negative effects such as taxes and fees. If a fee of 5 euros is charged when buying a stock worth 100 euros, then 105 euros are debited from your account. Thanks to the settlement account function, this fee is now included in the calculation of your portfolio value.

How to Activate a Settlement Account in Parqet

You can optionally activate the settlement account function for each cash holding. You can create a cash holding in the dashboard below the securities table via the "New Cash Holding" button or via the plus button in the bottom right corner of the screen. Here you can find detailed instructions.

Once you've created a cash holding, you can activate the settlement account on the cash holding's detail page via the Manage button. If you already have an existing portfolio, we recommend using the "Generate Transfers" button to automatically create the appropriate offsetting transactions for activities already entered.

We recommend using the "Generate Transfers" button to automatically create the counter-bookings for activities already entered.

By automatically generating the offsetting transactions, you can use the settlement account immediately. As soon as you create additional securities activities, a settlement activity will be created automatically.

Settlement Accounts for Different Investment Types

When creating a settlement account, you have the option to assign each of your asset classes to a different settlement account. As soon as we support additional asset classes such as crypto, you can create separate settlement accounts for crypto and securities, for example.

We're excited to start the new year with the cash release. At this point, we would also like to thank all Beta Circle users who have thoroughly tested the cash function and settlement accounts for several weeks.

As always, we look forward to your feedback on the new feature in the corresponding community post.

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