Two simple questions?


G

Glenn B.

Ok, I need to simplify this process for Money 2006 DX.

#1-When I enter a transaction in my check register to transfer $100 to my
Savings register, how to I add a category to that checking transaction that
will show up in my checking budget as an categorized expense? After all, it
is money spent...just paid to myself to be deposited into another account.

I like the transfer because it negates double entry in Money.

#2 How can I budget these weely tranfers to my savings account that will
show up in my current and future monthly budgets..and show them as actual
expenses?
 
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W

William R Wood

Glenn,

You are confusing transfers and expenses. It is frustrating and
non-intuitive but there is no correct way to show deposits to savings as an
expense.

This is not Money's fault. From an accounting standpoint, when you transfer
money from your checking account to a savings account that is not an
expense. You are merely changing the location of an asset - the $100 cash
is still worth $100 and it still belongs to you no matter what account you
put it in or transfer it to. There is no way to add a category to a
transfer transaction because there cannot be a category since the
transaction is neither income nor expense.

Just to reiterate, when you say the transaction it money spent, technically
that is not correct. It is money taken from one account and placed in
another account both belonging to you. It is not an expense when leaving
the checking account and it is not income when entering the savings account,
merely a transfer.

But the transaction does represent cash flow and you can setup a weekly
transfer from checking to savings in scheduled bills and deposits to make
this easy. These transfers will show up in your cash flow reports and you
will see the decrease in your checking account and the increase in your
savings account balances but these transactions will not be seen on your
budget (except as transfers into/out of budget accounts) or as income or
expense in any type of income/expense report because they are transfers.
But, you can see transfers to specific accounts on income/expense reports
using the customization dialog if you set the account and transfer settings
correctly (use Include transfers to/from account that are not in the
report - exclude your savings acct from the report and the transfers will
appear).

There is a related concept which I will mention in case you are interested -
the difference between expenses and asset purchases. If you buy a
consumable item like food or electricity that is an expense, but if you buy
an item that has lasting market value like a car or furniture or a
telescope, that is an asset. So if you paid cash for a car, the transaction
would be recorded as a transfer from your checking account to an asset
account called Autos or similar. The actual purchase of the car is not an
expense because you have merely converted one asset, cash, into another
asset, the car - both worth the same amount and both belonging to you.
Subsequent depreciation on the car is, of course, an expense and it should
be written off periodically to an expense account called depreciation.

Hope this helps.


Regards,

Bill Wood
Fountain Hills, AZ
 
C

Chris Cowles

Glenn B. said:
Ok, I need to simplify this process for Money 2006 DX.

#1-When I enter a transaction in my check register to transfer $100 to my
Savings register, how to I add a category to that checking transaction
that will show up in my checking budget as an categorized expense? After
all, it is money spent...just paid to myself to be deposited into another
account.

I like the transfer because it negates double entry in Money.

#2 How can I budget these weely tranfers to my savings account that will
show up in my current and future monthly budgets..and show them as actual
expenses?
#1. Transfers show up only under a special category called "Transfers out of
budget" (or into budget). They do that only when one of the accounts is a
budget account, and the other is not. That is set on the details page of the
account. In '06, select 'Change account settings' in the left pane of the
register.

All transfers from/to budget accounts to/from non-budget accounts are lumped
together under the special 'Transfers' category in the budget reports. You
cannot control that. The only way to modify what's in that budget category
is by #2, below.

Transfers between two accounts with the same budget setting do not appear in
the budget report. They're either totally non-budget, or if both accounts
are in-budget, do not affect the budget because it's simply changing where
you park the money. Not until you actual spend it, or transfer it out to a
non-budget account (such as an investment account) is it considered a budget
event.

#2. Create a transfer transaction in the Bills Summary. Consider whether you
think of this primarily as a transfer OUT of checking, or a transfer INTO
savings. Yes, it seems silly, but that affects how Money displays it in
Bills History, when you enter it in your register. ('View history' in left
pane of '06 Bills summary.)

Money doesn't support savings goals as well as Quicken does (or did) with
the use of sub-accounts. You can still see a pretty good projection, though,
by viewing the cash flow forecast for your savings account. That assumes you
scheduled transfers as above. Classifications may be useful for this, but I
haven't tried. I think a weakness would be that you can't split
classifications, and a single transfer from checking to savings may be
earmarked for several different purposes.
 
G

Glenn B.

Glenn B. said:
Ok, I need to simplify this process for Money 2006 DX.

#1-When I enter a transaction in my check register to transfer $100 to my
Savings register, how to I add a category to that checking transaction
that will show up in my checking budget as an categorized expense? After
all, it is money spent...just paid to myself to be deposited into another
account.

I like the transfer because it negates double entry in Money.

#2 How can I budget these weely tranfers to my savings account that will
show up in my current and future monthly budgets..and show them as actual
expenses?
 
G

Glenn B.

Thanks Will and Chris. At least I know I haven't overlooked something simple
here.

As far as the transfers not being categorized, I have to disagree because
I'm not an accountant..I'm a layperson needing to track something my way.
But live and learn :)

BUT, as Chris noted..I can track these transfers as they do show up in
Reports after the fact.

Glenn
 
J

John WS

Glenn B. or Will or Chris: This thread does NOT show the answers Will and
Chris seem to have posted. And Glenn's question is exactly my issue. Can
one of you re-post the solution? Thank you. John.
 
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C

Cal Learner-- MVP

Glenn B. or Will or Chris: This thread does NOT show the answers Will and
Chris seem to have posted. And Glenn's question is exactly my issue. Can
one of you re-post the solution? Thank you. John.
A really neat way to find prior postings in this group is to use the
Google Usenet Groups archive.

http://groups.google.com/advanced_group_search enter words that you
think would be in relevant posts into the "all of the words" box.
Enter microsoft.public.money into the newsgroup box. Consider
selecting Sort By Date.
 

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