With multiple expense, credit accounts in quicken, what is the proper way to categorize?

Apologies, this may be basic, but having trouble mentally thinking this through...With multiple expense, credit accounts in quicken, what is the proper way to categorize - example - From Checking payment $500 to pay Credit Card123, and $500 to CreditCard456 then what to categorize the credit shown once the Credit Card123 and Credit Card456 is reconciled/updated.  If I create a category called Credit Card and assign to both, The main register shows credit Card of $0 since it balances out.  How should both be categorized?

Best Answer

  • jrich75
    jrich75 Member ✭✭✭✭
    edited January 19 Accepted Answer
    In Quicken, Credit Cards are typically managed using individual credit accounts, one for each credit card.  When purchases are made with a card, the purchase transaction is entered into the account for that card, using the appropriate category for that purchase.  When a card statement comes due, the payment is made from your checking/payment account.  The payment is entered as a transfer transaction from the payment account using the name of the credit card account in brackets as the category (such as [BofA Visa]).  No "Credit Payment xx" category is needed.  The transfer transaction appears in both the payment and the credit account with the category reflecting the source or destination account as appropriate.
    Quicken user since 1995
    Win10 Deluxe Subscription thru 2021

Answers

  • jrich75
    jrich75 Member ✭✭✭✭
    edited January 19 Accepted Answer
    In Quicken, Credit Cards are typically managed using individual credit accounts, one for each credit card.  When purchases are made with a card, the purchase transaction is entered into the account for that card, using the appropriate category for that purchase.  When a card statement comes due, the payment is made from your checking/payment account.  The payment is entered as a transfer transaction from the payment account using the name of the credit card account in brackets as the category (such as [BofA Visa]).  No "Credit Payment xx" category is needed.  The transfer transaction appears in both the payment and the credit account with the category reflecting the source or destination account as appropriate.
    Quicken user since 1995
    Win10 Deluxe Subscription thru 2021
  • Thanks, so is the same true to categorize the transaction of the actual payment showing as a credit to the credit card?
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    The "payment to the credit card" is a transfer ... as @jrich75 discussed in his reply..
    IF it was an expense item, then all of those expenses would be counted twice.  Once in the card account and again with the payment.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • jrich75
    jrich75 Member ✭✭✭✭
    edited January 19
    Thanks, so is the same true to categorize the transaction of the actual payment showing as a credit to the credit card?
    A single transfer transaction appears in both the payment account and the account receiving the funds.  So the credit credit account would show it as a payment from the payment account (with a category something like [My Checking]).  You don't need another transaction in the credit card account.
    Quicken user since 1995
    Win10 Deluxe Subscription thru 2021
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