How do I set up a category to show neg money that is OWED by my grown kids that have used my credit

Unknown

How would I set up a category showing total funds OWED to me through purchases I have made for my adult children at their request that PROMISE it will be paid back. I would like to keep a running balance showing a negative amount for easy viewing. Specifically I need the total at my life's end to even out the proceeds to each adult CHILD. Not all use me as the bank!!!

NotACPA

That wouldn't be a Category, it would be an Asset type account.  On your mortgage/credit cards/etc, you owe the money, so there's a Liability account to reflect that.

For money owed to YOU, it's an Asset type account.

Unknown

Create an asset account.

Use that asset account as the transfer category name enclosed in square brackets, such as [Deadbeat Kids] instead of a regular category.

Also, make sure you use tags to describe what the purchase is and which deadbeat adult child you purchased it for.  You can use multiple tags per each transaction.  

As the charges accrue, you'll have them all in the asset account.

You can run a report for that one account, sorted by the tag for each child. 

Tom Young

You wouldn't want to use a "Category" in this case, you'd use an "Account" or "Accounts." 

(For clarification: In Quicken-speak a "Category" is what real accountants would refer to as an "income" or "expense" account.  That is, you'd expect to see "Categories" listed out in a Profit or Loss statement or an Income and Expenses statement.  Quicken "Spending" reports typically list out "Categories." 

An "Account", on the other hand, is what real accountants would call a "balance sheet" account; some sort of asset, or liability.  Quicken "Net Worth" and "Account Balances" reports typically list out "Accounts.")

So, in the case of son "Joe" who says "Dad, buy me this and I'll pay you back" you'd set up some sort of asset Account - a "receivable" - titled something like "Due from Joe" and when you bought whatever it is he wants you'd record this as a "transfer" - another bit of "Quicken-speak" - out of your bank Account and into the [Due from Joe] asset Account.  That would establish the amount that Joe owes you and anytime you wanted to see what that amount was you'd simply run a Net Worth or Account Balance report and that amount would be plain to see.

If Joe actually paid back some amount he owed you you'd enter that in Quicken as a deposit to your bank account with the offset being the [Due from Joe] asset Account.  That would update the amount the Joe owes you and that amount would be readily visible anytime you ran a Net Worth or Account Balances" report.

You'd set up an asset Account for each child that "borrows" from Bank of Dad and make your accounting entries into these Accounts for amounts you've spent and amount that each child pays back.  In your will you'd specify that the Account balance for each child gets settled up before the property division.

Unknown

Thank you gmailis1 and NotACPA for the quick reply. Thank you so much. I have been racking my one brain cell to it's max. The sad part is I used to be a bookkeeper many many years ago. It's very frustrating getting old ;-) Have a wonderful evening everyone!

Unknown

You wouldn't want to use a "Category" in this case, you'd use an "Account" or "Accounts." 

(For clarification: In Quicken-speak a "Category" is what real accountants would refer to as an "income" or "expense" account.  That is, you'd expect to see "Categories" listed out in a Profit or Loss statement or an Income and Expenses statement.  Quicken "Spending" reports typically list out "Categories." 

An "Account", on the other hand, is what real accountants would call a "balance sheet" account; some sort of asset, or liability.  Quicken "Net Worth" and "Account Balances" reports typically list out "Accounts.")

So, in the case of son "Joe" who says "Dad, buy me this and I'll pay you back" you'd set up some sort of asset Account - a "receivable" - titled something like "Due from Joe" and when you bought whatever it is he wants you'd record this as a "transfer" - another bit of "Quicken-speak" - out of your bank Account and into the [Due from Joe] asset Account.  That would establish the amount that Joe owes you and anytime you wanted to see what that amount was you'd simply run a Net Worth or Account Balance report and that amount would be plain to see.

If Joe actually paid back some amount he owed you you'd enter that in Quicken as a deposit to your bank account with the offset being the [Due from Joe] asset Account.  That would update the amount the Joe owes you and that amount would be readily visible anytime you ran a Net Worth or Account Balances" report.

You'd set up an asset Account for each child that "borrows" from Bank of Dad and make your accounting entries into these Accounts for amounts you've spent and amount that each child pays back.  In your will you'd specify that the Account balance for each child gets settled up before the property division.

Thank you Tom Young for the detailed explanation. I really appreciate you taking the extra time,  At this stage of my life the more detailed the easier it is for me to get the problem fixed quickly and correctly. Have a great evening, 

Unknown

You wouldn't want to use a "Category" in this case, you'd use an "Account" or "Accounts." 

(For clarification: In Quicken-speak a "Category" is what real accountants would refer to as an "income" or "expense" account.  That is, you'd expect to see "Categories" listed out in a Profit or Loss statement or an Income and Expenses statement.  Quicken "Spending" reports typically list out "Categories." 

An "Account", on the other hand, is what real accountants would call a "balance sheet" account; some sort of asset, or liability.  Quicken "Net Worth" and "Account Balances" reports typically list out "Accounts.")

So, in the case of son "Joe" who says "Dad, buy me this and I'll pay you back" you'd set up some sort of asset Account - a "receivable" - titled something like "Due from Joe" and when you bought whatever it is he wants you'd record this as a "transfer" - another bit of "Quicken-speak" - out of your bank Account and into the [Due from Joe] asset Account.  That would establish the amount that Joe owes you and anytime you wanted to see what that amount was you'd simply run a Net Worth or Account Balance report and that amount would be plain to see.

If Joe actually paid back some amount he owed you you'd enter that in Quicken as a deposit to your bank account with the offset being the [Due from Joe] asset Account.  That would update the amount the Joe owes you and that amount would be readily visible anytime you ran a Net Worth or Account Balances" report.

You'd set up an asset Account for each child that "borrows" from Bank of Dad and make your accounting entries into these Accounts for amounts you've spent and amount that each child pays back.  In your will you'd specify that the Account balance for each child gets settled up before the property division.

Tom This is the step that always STOPPED me in my tracks.  Which type of Account would be the best to use: Chkg, Credit Card, Savings or Cash???  This is what confused me.  I charge items for them but IF the pay it's usually cash. PLZ HELP ME...

volvogirl

You wouldn't want to use a "Category" in this case, you'd use an "Account" or "Accounts." 

(For clarification: In Quicken-speak a "Category" is what real accountants would refer to as an "income" or "expense" account.  That is, you'd expect to see "Categories" listed out in a Profit or Loss statement or an Income and Expenses statement.  Quicken "Spending" reports typically list out "Categories." 

An "Account", on the other hand, is what real accountants would call a "balance sheet" account; some sort of asset, or liability.  Quicken "Net Worth" and "Account Balances" reports typically list out "Accounts.")

So, in the case of son "Joe" who says "Dad, buy me this and I'll pay you back" you'd set up some sort of asset Account - a "receivable" - titled something like "Due from Joe" and when you bought whatever it is he wants you'd record this as a "transfer" - another bit of "Quicken-speak" - out of your bank Account and into the [Due from Joe] asset Account.  That would establish the amount that Joe owes you and anytime you wanted to see what that amount was you'd simply run a Net Worth or Account Balance report and that amount would be plain to see.

If Joe actually paid back some amount he owed you you'd enter that in Quicken as a deposit to your bank account with the offset being the [Due from Joe] asset Account.  That would update the amount the Joe owes you and that amount would be readily visible anytime you ran a Net Worth or Account Balances" report.

You'd set up an asset Account for each child that "borrows" from Bank of Dad and make your accounting entries into these Accounts for amounts you've spent and amount that each child pays back.  In your will you'd specify that the Account balance for each child gets settled up before the property division.

It's none of those. Set up an Asset account.. Then you enter the charge into your normal credit card account and make it a Transfer to the Asset account.


Then when they pay you cash you need a Cash Account to enter the cash into and make it a Transfer to the Asset Account.

Unknown

You wouldn't want to use a "Category" in this case, you'd use an "Account" or "Accounts." 

(For clarification: In Quicken-speak a "Category" is what real accountants would refer to as an "income" or "expense" account.  That is, you'd expect to see "Categories" listed out in a Profit or Loss statement or an Income and Expenses statement.  Quicken "Spending" reports typically list out "Categories." 

An "Account", on the other hand, is what real accountants would call a "balance sheet" account; some sort of asset, or liability.  Quicken "Net Worth" and "Account Balances" reports typically list out "Accounts.")

So, in the case of son "Joe" who says "Dad, buy me this and I'll pay you back" you'd set up some sort of asset Account - a "receivable" - titled something like "Due from Joe" and when you bought whatever it is he wants you'd record this as a "transfer" - another bit of "Quicken-speak" - out of your bank Account and into the [Due from Joe] asset Account.  That would establish the amount that Joe owes you and anytime you wanted to see what that amount was you'd simply run a Net Worth or Account Balance report and that amount would be plain to see.

If Joe actually paid back some amount he owed you you'd enter that in Quicken as a deposit to your bank account with the offset being the [Due from Joe] asset Account.  That would update the amount the Joe owes you and that amount would be readily visible anytime you ran a Net Worth or Account Balances" report.

You'd set up an asset Account for each child that "borrows" from Bank of Dad and make your accounting entries into these Accounts for amounts you've spent and amount that each child pays back.  In your will you'd specify that the Account balance for each child gets settled up before the property division.

Thank you Volvogirl. Found it and NOW I understand.  It's so easy for me to get confused these days.  So glad I have a "Community" that can explain it to me. ;-}

Unknown

I'd just go with a category.  Set up a category called 'kids', with each one in a sub category, & when you go through each purchase, assign it to whatever kid has made the charge.  You can make an easy quick report, or have more detailed reports that add up over the years.  If one of the kids has a weak moment, & pays you back some of it, you can have that as a positive amount in that category.

Unknown

I'm glad everyone understands 'adult kids' these days. Boy won't they be surprised when they have to accept their "promises to pay me back". These amounts will be charged against their inheritance from my estate upon my departure to a more beautiful place for eternity.  Nothing gets by Good Old Mom!  I appreciate all your input.  I will try the various suggestions on an old backed up copy & see which suits my needs.  They are all great suggestions and give me a choice.  I need simple & simpler.  Now to clean up the mess I have created over years of categories & accounts I have opened & closed in the name of my kids from liabilities, loans, assets etc!
Whew, I think I got it. Thank you all.  Now how do we mark this Answered!!!

Vetta

"These amounts will be charged against their inheritance from my estate upon my departure to a more beautiful place for eternity."

Not unless you specify that in your Will. This does not happen automatically in any state.

Tom Young

I'd just go with a category.  Set up a category called 'kids', with each one in a sub category, & when you go through each purchase, assign it to whatever kid has made the charge.  You can make an easy quick report, or have more detailed reports that add up over the years.  If one of the kids has a weak moment, & pays you back some of it, you can have that as a positive amount in that category.

Although you can use a Category here it simply makes more sense to use an Account. 

First, having "loaned" money to your child you certainly have an "asset" - a "receivable" if you will - and that's exactly what an asset Account represents. 

Second, the balance in the asset Account always reflects the net amount still owed to the parent at any time and that Account shows the complete history of transactions at a glance.  Want to print out a history of transactions in that Account?  Simply run a Register Report and hand it to the child.

Using a Category certainly can give you this same information but you have to run a Spending report each time you want to see the history and determine the balance, and you have to make sure that Spending report covers the correct time period; if you happen to select an incorrect "from" or "to" date you're going to get erroneous information.

So logically and practically an Account makes more sense.

Unknown

Thank you for the comment Vetta.  Good to know. It will be specified in our Living Trust as that will soon be updated and all children are to get as close to equal as physically possible.