Why does Quicken add balance adjustment to manually added mortgage account?

I manage my mortgage by using a manually added mortgage account linked to my home asset and I use the bills and income to setup a repeating payment to mortgage with proper splits, etc..

For some reason, Quicken added a balance adjustment to my mortgage which made the balance incorrect. If I remove the adjustment then the balance would be correct but I want to understand why its doing this before i make any changes.

Not sure if related, but quicken also added a market adjustment to my home asset account in the amount of 1 month's principal. Also not sure why and doesnt make sense

Thanks for any help figuring this out!

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Are you downloading into this mortgage account?
    Is the adjustment in the mortgage account related to the adjustment in the Home account?
    In the respective accounts, what's the category used for each transaction?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • harry askenazi
    harry askenazi Member ✭✭
    I am specifically not downloading anything into this account bc that presented a bunch of issues and I retain much greater flexibility managing the mortgage account manually.

    The adjustments in each account dont seem to be related (diff amounts and dates)

    The balance adjustment that Quicken made into the liability (mortgage) account was categorized as a balance adjustment into the same account. So the category is the account itself

    The same is true for the home/asset account. Quicken made a Market adjustment by categorizing a transfer into the same account (much like it does if I choose to update the value based on zillow estimate)
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited May 2020
    Are there any transfers into your Mortgage loan OTHER than your monthly payments?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • harry askenazi
    harry askenazi Member ✭✭
    Only transfers are the original opening balance for the full amount of the loan, and the Balance adjustment in question here. Otherwise, all transactions are monthly payments. And the entire account would be reconciled accurately if not for the balance adjustment in question that quicken did automatically for some reason
  • UKR
    UKR SuperUser ✭✭✭✭✭
    Are you using the scheduled reminder created by the loan setup process to record your monthly payment? Or are you using a different method?
    Does the Split transaction coming from your checking account look different from the following (except account names, of course)?
    If it's different ... Quicken relies on the order of the split lines to be able to make correct calculations. Anything else may cause it to get confused.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Actually, if you don't need the 4th line, then you don't need the 3rd either.
    And, in the mortgage payment for my home, there are both a 4th and 5th line, with different tags.  One for my Real Estate tax escrow funds and another for my Insurance escrow funds ... even though they're held in the same account at the lender and in Q.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • harry askenazi
    harry askenazi Member ✭✭
    > @UKR said:
    > Are you using the scheduled reminder created by the loan setup process to record your monthly payment? Or are you using a different method?Does the Split transaction coming from your checking account look different from the following (except account names, of course)?
    > (Image)
    > If it's different ... Quicken relies on the order of the split lines to be able to make correct calculations. Anything else may cause it to get confused.

    I am using the scheduled reminder created by the loan setup process (almost certain)

    My split transaction is identical to yours - order and accounts
  • harry askenazi
    harry askenazi Member ✭✭
    > @NotACPA said:
    > Actually, if you don't need the 4th line, then you don't need the 3rd either.And, in the mortgage payment for my home, there are both a 4th and 5th line, with different tags.  One for my Real Estate tax escrow funds and another for my Insurance escrow funds ... even though they're held in the same account at the lender and in Q.

    I do need the 4th line bc I have escrow payments. I do not have additional lines. Instead, when a payment is made from escrow for taxes or insurance, I manually enter the transaction in the escrow account and categorize accordingly. Dont think this explains the auto adjustment that Quicken is making for me into my mortgage account
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    The payments that you're making from your escrow account are correct.
    I make 2 transfers to the escrow account since the 2 automatic payments are taken at different times (December for RE Tax and March for Homeowners Insurance) and I want to be able to view/manage them as separate liabilities.  The 2 different tags allows that.
    Is the 3rd line in your split payment $0?
    And, how does that "adjustment" appear in your mortgage account? Is it an actual transaction, or what?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
This discussion has been closed.