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Proper Categorizing Transactions/Transfers

Dangerruss

My credit card transactions are categorized as an expense. I payoff my credit card with a direct transfer from my banks checking account. How should I properly categorize this payment transfer from my checking account to my credit card?
Thanks in advance... Russell

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Accepted answers

NotACPA

To do this properly, you should:

Create credit card accounts (1 per card account) in Q
Record your card transactions in those Q card accounts (THESE are the expenses)
Transfer money from your Q checking account to the Q Card account(s). If THESE were expenses ... then you'd be double-counting the expenses.

Income and Expense transactions make you richer or poorer, respectively. A Transfer merely moves money from on pocket to another ... and because of the Transfer you're neither richer nor poorer.

All comments

NotACPA

To do this properly, you should:

Create credit card accounts (1 per card account) in Q
Record your card transactions in those Q card accounts (THESE are the expenses)
Transfer money from your Q checking account to the Q Card account(s). If THESE were expenses ... then you'd be double-counting the expenses.

Income and Expense transactions make you richer or poorer, respectively. A Transfer merely moves money from on pocket to another ... and because of the Transfer you're neither richer nor poorer.

Dangerruss

Thanks.. #1 & 2 completed years ago. Totally understand #3. This is what I am trying to fix so I am not double counting expenses. I would like this bank transfer to my credit card not have a category assigned. How do I fix this? Thanks!!!

NotACPA

I'm confused. The card payment, in your checking account register, should have as the Category the name of the Card account enclosed in square brackets, e.g. [VISA].

This will cause the transfer to happen in Q, and your Card balance will be reduced (moved closer to zero).

What are you showing as the "category" in the checking account transaction for these payments?

Dangerruss

I think I just figured it out. I mistakenly created these transfer categories instead of selecting the proper TRANSFER item from the category drop down menu. I hope that make sense... When I fix all those transfers, I'll report back

Dangerruss

FIXED!!!

NotACPA

Congrats. NOW, you should be able to pull out your old Card statements and Reconcile that/those card accounts.