Re: Share calculation in VBA?

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From: NorTor (toa_at_nospam_subnett.no)
Date: 12/14/04 

Date: Tue, 14 Dec 2004 09:48:00 +0100

Dear David!

Thank you for your two replys; no, I have not yet solved it, I need to
solve it though :-)

My purpose is to put back the corresponding cost in a column in the
sell sheet (table). This again, will be used for calculating the
profit / loss for all sales transactions. There will only be one sell
pr day here, so the only reason for the date column in both the sell
and buy sheets (tables) is to be able to be sort the transactions
historically, of course so that the FIFO principle can be used on the
correct transactions.

I am not sure, but the only feasible way I can think of, is a do until
loop in the sell sheet, with a do until loop inside the buy sheet, to
test and subtract the quantities from the first sell compared to the
first buy, if the sell is larger in quantity, going to the second buy
transaction, continuing this to the n buy transaction. Inside this
there must be some calculation that adds buy cost for all quantity
that adds up to the sold quantity. And also there must be some other
logic if the sell is smaller than the first buy, making sure the
remains of the first buy then is used to calculate the buy of the next
sell transaction.

This explanation might just contribute to confuse, but it is kind of
hard to explain... hope it helped though :-)

Cheers,
-NorTor

On Tue, 14 Dec 2004 00:25:01 -0800, "David"
<David@discussions.microsoft.com> wrote:

>Hi Nor,
>One more question, what do you want to do with this FIFO-Avgeraged Cost.
>when you get it? This is the average cost for the whole days Sales or was
>your intent to bring it back to the Sell sheet and put it next to each sell,
>assuming you can have more than one Sell in a day?
>
>"David" wrote:
>
>> Hi Nor, Have you solved this problem yet? I am just curious. I would work on
>> this, but maybe you are done?
>>
>> "NorTor" wrote:
>>
>> > Great; I hope you will find a way... :-)
>> >
>> >
>> > I have tried for very long now, and I feel that I am *almost* there,
>> > using do until loops in both tables (sheets), subracting sales from
>> > the buy if it is smaller than the buy (talking of quantities), and
>> > "emptying" the buy going to the next if it is bigger than the buy /
>> > remaining of the buy.
>> >
>> > Problem I got stuck in, was when the sell was bigger than two buys
>> > together (or more than two buys), how to build the calculation for all
>> > these buys, in theory n buys.
>> >
>> > Hope to hear from you, thank you so much!
>> >
>> >
>> >
>> > Cheers,
>> > -NorTor-
>> >
>> >
>> >
>> >
>> >
>> > On Mon, 13 Dec 2004 16:02:22 -0500, "Michael Malinsky"
>> > <joeqcpa@yahoo.com> wrote:
>> >
>> > >I'm sure you know the principle, but when you intermixed the two, it was
>> > >difficult to determine which you really meant as the code used to calculate
>> > >the gain/loss would be different.
>> > >
>> > >Let me chew on this one for a while.
>> > >
>> > >"NorTor" <toa@nospam_subnett.no> wrote in message
>> > >news:11qrr0thomb86budmpg4f7q5bft9m5cl3k@4ax.com...
>> > >> Hello Michael, thank you for your reply.
>> > >>
>> > >> I mean the FIFO, and my example is only to show that the cost price
>> > >> (following the FIFO), must be 'weighted together' by the quantity of
>> > >> the buys that together is the quantity of the sale.
>> > >>
>> > >> But the principle is not the problem, I know that very well, but how
>> > >> to program this to be completely dynamic in Excel VBA.
>> > >>
>> > >> Again thank you for your reply.
>> > >>
>> > >>
>> > >> Regards
>> > >> NorTor
>> > >>
>> > >>
>> > >>
>> > >> On Mon, 13 Dec 2004 13:13:55 -0500, "Michael Malinsky"
>> > >> <joeqcpa@yahoo.com> wrote:
>> > >>
>> > >> >You are intermixing the FIFO and weighted average methods in your post
>> > >but
>> > >> >it can only be one or the other. If you want to use the FIFO method, the
>> > >> >gain on your first sale would be calculated as:
>> > >> >
>> > >> >5000 * (11.40-10.50) +
>> > >> >2000 * (11.40-11.20)
>> > >> >
>> > >> >If you want to use weighted average, you would calculate a weighted
>> > >average
>> > >> >of the total holdings of a particular item and use that to calcluate the
>> > >> >gain/loss on the sale. The weighted average would then have to be
>> > >adjusted
>> > >> >whenever you buy/sell that item. Some clarification on this might help.
>> > >> >
>> > >> >"NorTor" <toa@nospam_subnett.no> wrote in message
>> > >> >news:i0krr0hpbh8k9bbfdf6kt2fq6a4i23i641@4ax.com...
>> > >> >> Hello everybody!
>> > >> >>
>> > >> >>
>> > >> >> I am stuck in how to solve the following problem in Excel VBA.
>> > >> >>
>> > >> >> Here is the situation;
>> > >> >>
>> > >> >> I have two tables, the first one contains all the 'buy' transactions
>> > >> >> of one particular financial share. Every row of the table is one
>> > >> >> buy-transaction of the share. The columns gives info on buy-date,
>> > >> >> number of shares bought, price per share, and total cost.
>> > >> >>
>> > >> >> The second table contains the same info, but with the 'sales' of the
>> > >> >> same particular stock. (Same here, e.g. every row is one transaction,
>> > >> >> the columns of every row containing the same information as for the
>> > >> >> 'buy' table.
>> > >> >>
>> > >> >> Now here is my challenge; I need to find a way to calculate a weighted
>> > >> >> average of the buy costs related to every 'sales' row... this is to be
>> > >> >> able to calculate profit / loss for every transaction (row) in the
>> > >> >> 'sales' table. In other words, calculation of profit / loss should be
>> > >> >> according to the FIFO (First In First Out) principle.
>> > >> >>
>> > >> >> This is easy of course if there is one sale for every buy, e.g. a buy
>> > >> >> of 1000 shares is followed by a sale of 1000 share; then the buy price
>> > >> >> of that sale would be the exact price of the corresponding buy.
>> > >> >>
>> > >> >> But in fact the quantities of the 'sale' transaction is totally
>> > >> >> independent of the quantities of the 'buy' transactions, the only
>> > >> >> restriction is that there at all times can be no larger sale quantity
>> > >> >> then the stock of shares in total (no short-selling allowed).
>> > >> >>
>> > >> >> So for instance the buys can be like:
>> > >> >>
>> > >> >> Date Qty. Share price
>> > >> >> 01.01.02 5,000 10.50
>> > >> >> 04.01.02 8,000 11.20
>> > >> >> 09.10.03 4,000 11.40
>> > >> >> 03.08.04 9,500 11.20
>> > >> >>
>> > >> >> And the sales can be like:
>> > >> >> 05.08.03 7,000 11.40
>> > >> >> 10.09.04 19,500 11.60
>> > >> >>
>> > >> >> In this example the cost price for the first sale should be calculated
>> > >> >> as follows:
>> > >> >>
>> > >> >> ((5000 / 7000) * 10.50 + (2000 / 7000) * 11.20) = 10.70
>> > >> >>
>> > >> >> Reason: Sale of 7,000 "eats" first buy of 5,000 + 2,000 of the next
>> > >> >> buy (of 8,000) and corresponding cost price for this sale is hereby
>> > >> >> the weighted average of these two factors.
>> > >> >>
>> > >> >> The second sale, the corresponding cost is:
>> > >> >> ((6000 / 19500) * 11.20) + (4000 / 19,500) * 11.40) +
>> > >> >> (9500 / 19500) * 11.20)) = 11.241
>> > >> >>
>> > >> >> Reason is the same: Sale of 19,500 remaining share "eats" the
>> > >> >> remaining 6,000 from the second buy, and all other remaining buys.
>> > >> >>
>> > >> >> I need a VBA procedure that can handle these fully flexible buy / sell
>> > >> >> structures, and calculate the weighted buy-average and have that
>> > >> >> inserted as a new column in the 'sales' table.
>> > >> >>
>> > >> >> Please pretty please help me if you can; I have headaches and
>> > >> >> nightmares (well, almost ;-)) trying to solve this myself...
>> > >> >>
>> > >> >>
>> > >> >>
>> > >> >> Best regards
>> > >> >> -NorTor-
>> > >> >
>> > >>
>> > >
>> >
>> >

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