Assigning proper transaction categories ?


E

Ed

I am new to Microsoft Money and while things seem to be going very well I
have a few transactions that I don't know how to catagorize.

How should the following be catagorized?

#1. An automatic withdrawl from my main checking account to saving? (And in
the Savings Account, what should the 'deposit' be catagorized as?)

#2. Deposit to main checking account?

#3 Payment to a credit card from the main checking account? (And in the
Credit Card Account, I seem to have a double-entry for a payment. But I am
hesitant to just delete one of them. One came from downloading the info from
my credit card company, while the other came from downloading my statement
from my checking account.

Thanks in advance!

-- Ed
(Please delete the 'REMOVE-THIS' and '2000' from my e-mail address to reply
directly.)
 
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C

Cal Learner-- MVP

I am new to Microsoft Money and while things seem to be going very well I
have a few transactions that I don't know how to catagorize.

How should the following be catagorized?

#1. An automatic withdrawl from my main checking account to saving? (And in
the Savings Account, what should the 'deposit' be catagorized as?)
Transfer:SavingsAccount, and at the other end it will appear as
Transfer:MainChecking.
#2. Deposit to main checking account?
Depends.


#3 Payment to a credit card from the main checking account? (And in the
Credit Card Account, I seem to have a double-entry for a payment. But I am
hesitant to just delete one of them. One came from downloading the info from
my credit card company, while the other came from downloading my statement
from my checking account.
Here are two ways I like:

1. When you process the first transaction of the credit card
payment, set the category as a transfer to the other ( credit card
or bank account), or use the equivalent "SPECIAL Credit Card
Payment" category. When you process the second transaction,Money
should match it. Be careful to not just Accept if Money did not
find the match on its own for some reason. Click Change and match
it to the transfer you already made if Money did not match it for
you. I would consider this the classic of the ways I like. Note
that for this you would *not* use the Money 2005 "EXPENSE Credit
Card Payment".

2. In method 2, don't handle credit card payments as transfers or
the pre-defined "Credit Card Payment Instead create one category of
"CC payment" or some such. If you define the category as an
expense category, expect a warning when you use it to represent the
payment within the credit card account -- if you have the warning
enabled. Just click Yes in response to the warning. The category
should net at zero in reports across accounts, and you can still
customize to ignore the category if you like. use the Money 2005
"EXPENSE Credit Card Payment". For this method you could use
the Money 2005 "EXPENSE Credit Card Payment".
 
D

Dick Watson

See answers below.

Ed said:
I am new to Microsoft Money and while things seem to be going very well I
have a few transactions that I don't know how to catagorize.

How should the following be catagorized?

#1. An automatic withdrawl from my main checking account to saving? (And
in the Savings Account, what should the 'deposit' be catagorized as?)
Transfer:[name of savings acct] in the checking account. This will also take
care of the other half and become a Transfer:[name of checking acct]
transaction in the savings acct. Transfer is a very important "special
category" that is used, one way or another, for any activity that makes you
neither richer (income) or poorer (expense). Since this is money you had
then and have now, it's not income or expense--it's a classic Transfer.
#2. Deposit to main checking account?
It depends. Why did you receive the money? Wages:Bonus? Investment
Income:Interest? Other income:Rebates and misc? Other income:Ebay proceeds?
You can call it whatever you want. The category is just a way to collect the
data with enough information to enable analysis for things like taxes and
budget.
#3 Payment to a credit card from the main checking account? (And in the
Credit Card Account, I seem to have a double-entry for a payment. But I am
hesitant to just delete one of them. One came from downloading the info
from my credit card company, while the other came from downloading my
statement from my checking account.
Transfer:[name of credit card] is generally the best thing to put in the
checking account that paid the bill. As you note, this will also show up in
the credit card account register. That's the beauty of it. Since you leaped
to downloading transactions without understanding some of this stuff, you
might want to read http://umpmfaq.info/faqdb.php?q=x147 and
http://umpmfaq.info/faqdb.php?cat=13.
 
D

Dick Watson

Oooops. http://umpmfaq.info/faqdb.php?q=147

Dick Watson said:
See answers below.

Ed said:
I am new to Microsoft Money and while things seem to be going very well I
have a few transactions that I don't know how to catagorize.

How should the following be catagorized?

#1. An automatic withdrawl from my main checking account to saving? (And
in the Savings Account, what should the 'deposit' be catagorized as?)
Transfer:[name of savings acct] in the checking account. This will also
take care of the other half and become a Transfer:[name of checking acct]
transaction in the savings acct. Transfer is a very important "special
category" that is used, one way or another, for any activity that makes
you neither richer (income) or poorer (expense). Since this is money you
had then and have now, it's not income or expense--it's a classic
Transfer.
#2. Deposit to main checking account?
It depends. Why did you receive the money? Wages:Bonus? Investment
Income:Interest? Other income:Rebates and misc? Other income:Ebay
proceeds? You can call it whatever you want. The category is just a way to
collect the data with enough information to enable analysis for things
like taxes and budget.
#3 Payment to a credit card from the main checking account? (And in the
Credit Card Account, I seem to have a double-entry for a payment. But I
am hesitant to just delete one of them. One came from downloading the
info from my credit card company, while the other came from downloading
my statement from my checking account.
Transfer:[name of credit card] is generally the best thing to put in the
checking account that paid the bill. As you note, this will also show up
in the credit card account register. That's the beauty of it. Since you
leaped to downloading transactions without understanding some of this
stuff, you might want to read http://umpmfaq.info/faqdb.php?q=x147 and
http://umpmfaq.info/faqdb.php?cat=13.
 
E

Ed

Dear Cal & Dick,

Thanks so much for the assistance. Now everything looks good as far as
deposits and transfers. But I am still having a bit of trouble with the
credit card account and two payments. So here's some more detail on this
problem:

On 1/18/05 I made an electronic funds transfer for payment to Citi Bank from
my checking account for $3,000 . In my Citi Bank account I can see the Citi
Cards Bill Payment from my checking for $3,000 on 1/18/05. I can also see
on 1/20/05 the same transaction as an electronic payment notice from Citi
Bank when I downloaded their statement.

Should I just delete one? Would this mess up my next reconciliation?

Thanks again!

-- Ed


(Please delete the 'REMOVE-THIS' and '2000' from my e-mail address to reply
directly.)
 
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C

Cal Learner-- MVP

Thanks so much for the assistance. Now everything looks good as far as
deposits and transfers. But I am still having a bit of trouble with the
credit card account and two payments. So here's some more detail on this
problem:

On 1/18/05 I made an electronic funds transfer for payment to Citi Bank from
my checking account for $3,000 . In my Citi Bank account I can see the Citi
Cards Bill Payment from my checking for $3,000 on 1/18/05. I can also see
on 1/20/05 the same transaction as an electronic payment notice from Citi
Bank when I downloaded their statement.

Should I just delete one? Would this mess up my next reconciliation?
Two mutually exclusive choices:

1. Delete one AND turn the other into a transfer. No mess-up will
occur. Next time, make the first you process into a transfer, and
match the next one you process to the transfer. This is the
normal/classic method.

2. Delete neither. Make the category of BOTH the SAME expense
category. This is a way that is probably more foolproof in that you
won't get out of sync if you do nothing.

In any case, downloading is good.
[signed]
Silent Majority :)
 
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