credit card cash basis

how do you change credit card date to the date paid, not the date of the transaction

Best Answer

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    The best way to record credit cards in Quicken is to have a separate account for each credit card, and record each transaction in the credit card account on the date of the charge -- mirroring the real world credit card account. When you pay the credit card bill, you enter the payment in your checking account, and make it a transfer to the credit card account. This records the cash coming out of your bank account on the correct day, and reduces your credit card balance -- again, a mirror of the real world.

    If you're trying to do something else in Quicken, please post back with more details.
    Quicken Mac Subscription • Quicken user since 1993

Answers

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    The best way to record credit cards in Quicken is to have a separate account for each credit card, and record each transaction in the credit card account on the date of the charge -- mirroring the real world credit card account. When you pay the credit card bill, you enter the payment in your checking account, and make it a transfer to the credit card account. This records the cash coming out of your bank account on the correct day, and reduces your credit card balance -- again, a mirror of the real world.

    If you're trying to do something else in Quicken, please post back with more details.
    Quicken Mac Subscription • Quicken user since 1993
  • Susan Bockholt
    Susan Bockholt Member
    Thanks Jacob. That makes sense. Is there a way to merge cash flow reports? I'm used to sending my accountant one P&L for our income/expenses and I was trying to avoid multiple reports. I moved all of the transactions from my credit card account (which I did set up) into my checking account thinking that would pick up the specific transactions, but the dates of course are date of transaction, not date I paid the CC. I messed up there.
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    I'm not sure what you mean about merging cash flow reports?

    For your P&L, you generally want the credit card transaction date for tax purposes, not the date the card was paid. For instance, I made several charitable contributions on December 31. I didn't get the credit card bill until mid-January, and didn't pay it until early February. But all that's relevant for tax purposes is that the transaction was made on December 31.

    You have a credit card account, and you record each transaction in the credit card account on the date it occurred. (In my example, a charge of $100 to XYZ Charity on 12/31/20.) When you run your Transaction report, you'll see the $100 expense on 12/31/20 in the Charity category. When you pay your credit card sometime later, you enter the payment in your checking account, using a category of "Transfer:[ABC Credit Card]", creating a linked transfer in that account reducing your balance by the amount paid.

    So: many transactions in the credit card account, one payment transaction in the checking account which is a linked transfer to the credit card account. Your expenses will appear on the date they occurred.

    Does that make sense? Does that accomplish what you wanted to do?
    Quicken Mac Subscription • Quicken user since 1993
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