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Percentage Splits are inaccurate
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This discussion was created from comments split from: Why are saved percentage splits into categories inaccurate?.
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(removed) I have several "Memorized Payees" with split percentages. When I get a rental at my condo, let's say for $1000.00 gross, it gets split as follows: Rental Expenses:Management $340.00 (34%), Rental Expenses:Commission $30.00 (3%), Rental Income +$1000.00 (100%) 100343=63% or $630.00 net income which is the amount shown in the "received" column . Save as a "Memorized Payee" by split percentages. Now I close Quicken. Reopen Quicken. Enter another rental. This one is for $974.24 gross. I do the math in the box for enter amount for this transaction 974.24*.63=613.77 and press OK. Everything is populated correctly, rounding is correct. No let's try a bigger rental income: say $3287.13 gross... enter 3287.13*.63=2070.89 and OK. Now it calculated the 3% as $98.62 (it should be $98.61, rounded down). The problem here is that Quicken is calculating using 2070.89, and figuring the total as 158.73% (no idea how many decimal places). What I really want to be able to do is enter the gross amount in the box and have Quicken do the math as follows: Item 1 write the gross income as rental income (this is what will be on my 1099), then write 34% of gross to management expenses, then write 3% of gross to commissions, then write the remainder to income (whatever the first row less the second row less the third row equals becomes the new total transaction amount in the received column). Further, do not update any of the values used to make these split percentages, because the fractional amount will roll into a new fractional amount and larger and larger errors will ensue.
However for the transactions being discussed before, you want the gross amount as the amount paid (typically) as that is the amount charged to your credit card. Let's try that one... I pretend to take my AT&T Universal Card to Kroger and buy $24000.01 of groceries. The split will be $12000.00 to groceries and the remainder, $12000.01 to an account called "Sally owes me" because we have an agreement that when certain items are purchased, that we will split the costthe person who actually goes to the store gets the $.01 benefit for uneven amounts. I "remember payee" as splits. Then I go into the memorized payee list and click "lock". It turns out that my automatic download of my Delta Skymiles Amex card has 20 Kroger transactions that all need to be split the same way. $1.32, no problem... $14.91, no problem... $83.11. Oops, Quicken decided to allocate the amounts as $41.53 and $41.58. It should be $41.55 and $41.56. So what is going on. Clear out the memorized payee for Kroger and reenter and memorize the $24000.01 with split percentages. Now enter a transaction for $1.32, but don't save it yet. If you look at the splits for the memorized transaction it now shows groceries 0.66, Sally 0.66 and 23998.69 as the remainder to get 24000.01. Now save the transaction. Quicken is changing some things but not all of the transaction. It has created a hybrid where the total in the charge column should be $24000.01 but it places $1.32 which is what we really want. $14.91... splits calculate correctly. memorized payee shows splits and then 24000.01 minus the 14.91. $83.11... splits are wrong as before, memorized payee shows the incorrect splits of $41.53 and $41.58 and $24000.01 less $83.11 or $23916.90. So why wasn't a percentage of 49.99997916667535% used instead of some number between 49.9639032608591% and 49.97593550703886% which rounds to the incorrect $41.53? I don't know the answer, I'm offering questions and a reproducible scenario.
I haven't written code in over a decade and don't really want to guess at the logic that is being used. However the memorized payee transaction is a red flag. Here the memorized payee transaction is being rewritten. Didn't I say lock? I don't care what is done internally, but let's call my transaction the gold standard; and I must really mean it for the transactions that I said to memorize and then lock.
Since I started the transaction by telling Quicken up front what the answer in the charge column was going to be, it made sure that happened. Remember the first example... I didn't type it in to be verbose. What I wanted to demonstrate is that there are multiple ways to create the split logic. I wanted to just enter the gross and have it calculate the net. It appears that is in fact what it might be trying to do except it has a memorized gross and a per transaction net. Perhaps this is the first example of dialectical programming, which if it is achieved, we need to be investing in this company. But so far the answer, at least to the laypeople, is wrong.0