How to include transfers in calculations and reports in Quicken Mac 2017

ProGolferProGolfer Unconfirmed
There is a way to account for transfers in Quicken Mac 2017, as first mentioned in a previous obscure post by another user. 

First, you'll need to make sure you have selected "Category" and "Transfer" from the "Columns" setting at the bottom of each Quickern register.  You should now see the Category AND Transfer columns in the registers. 

Then, you can categorize a "transfer" transaction as a "normal" category AND as a transfer.

For example, my mortgage payment amount consists of the mortgage principal and the mortgage interest.  

The mortgage principal is a transfer to the mortgage loan liability account, which in turns reduces the balance there.

The way you NOW look at how Quicken Mac handles this is to put the mortgage loan account in square brackets in the category field.

INSTEAD, use the category as "Mortgage Principal" and in the transfer field put in [MyMortgageLoan]...the name of your Quicken Loan account enclosed in square brackets (or select from the drop down list). 

Same for Retirement Benefits from a 401K or an IRA. 

Categorize the transaction in the checking account as a category of "Retirement Benefits" AND in the transfer field put in [My401K].

In order to do this however, your Mortgage Loan account must NOT be automatically downloaded and the Bill Reminder must be turned off in the Loan settings.

Now, for the fun part.

You'll now notice that if you select the Banking Sub-Group heading, your graph and amount of cash flow is correct.  There is no "incorrect" amount because before the mortgage principal amounts cancel each other and the cash flow is therefore over-inflated. 

If you create a month to date or year to date report in New Reports (make sure you use NEW REPORTS by category), you can filter the accounts and categories for that report.

ONLY include your cash flow accounts...such as cash, checking and credit card accounts.  DO NOT include your Mortgage Loan account or retirement accounts.  

You'll notice you now have a perfect report for the actual cash flow of your funds...in and out.

Then, you can also create a budget...because instead of categorizing things as a transfer, you're categorizing them with a "normal" category and including the transfer in another field.  Therefore the Mortgage Principal is now accounted for in the budget, since it's a category. 

And you can still create reminders for your mortgage payment or retirement transfer to checking or whatever transfer you created...because you're categorizing the transaction as well as designating a transfer.  

Try it...this works so well I'm shocked no one else has recommended this.

The only downside is that your loan is now a manual loan...and you'll need to enter the actual principal and interest amounts manually.  But your amortization schedule is apparent in the loan account section, so it's easy to see what those amounts are.  

Here's a screenshot of the Checking account register showing the mortgage payment split:


image

Notice the Category has both Mortgage Principal and Mortgage Interest...but the Transfer column is only for the Mortgage Principal amount and designates my mortgage account in Quicken.

And of course, the mortgage account shows the transfer from my checking account for the mortgage principal.

Now, as I said before, it's important in the report created to ONLY include your cash flow accounts, such as cash, checking and credit cards.  If you leave ALL accounts included, the Mortgage Principal amounts will cancel each other out.  But since you only use the cash flow accounts I mentioned, only "one side" of the transfer will be included.

Easy-peasy.  

Comments

  • John_MJohn_M Member
    edited November 2017
    Thank you for this post. However, it seems like a lot of work to go through with many downsides (manual loan, redoing old transfers, no reminders, etc). As we all know, QW has the correct logic to show transfers without all these machinations. I think I’ll wait unti reporting gets improved in QM and just live without this for now.
  • ProGolferProGolfer Unconfirmed
    edited February 2018
    John M said:

    Thank you for this post. However, it seems like a lot of work to go through with many downsides (manual loan, redoing old transfers, no reminders, etc). As we all know, QW has the correct logic to show transfers without all these machinations. I think I’ll wait unti reporting gets improved in QM and just live without this for now.

    Keep waiting.  I assumed this was the NUMBER ONE priority for Quicken Mac 2018...to include the handling of transfers in reports and budgets.

    No...they felt it was more important to fiddle around with investment reports.

    Having an Income/Expense report, Cash Flow report and a budget without accounting for my retirement income and/or my mortgage principal makes Quicken Mac unusable for me.  I'm not going to take out a calculator and manually add that amount to my expenses to get an accurate monthly and annual cash flow.

    I understand it may be a lot of work to do what I've outlined.  Fortunately, for me I just had a new mortgage since November 2016, so manipulating the categories and transfers wasn't that big of an effort.

    Quicken has promised a more robust reporting engine as time goes on.  I'm not sure I can wait that long for something that EVERY OTHER financial software product can do without the hoops you need to go through. 
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