How to categorize cash deposits

I am on a friend and family cell phone plan. When they pay me their portion of the bill, I deposit it, but the only thing I see for a category is Other Inc. Same with when my girlfriend gives me cash to help pay a bill. What category would I place this under? Its not an income.

Thanks

Best Answer

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @mjk53029

    Currently, when you make the payment to the cell phone vendor, to which category in Quicken do you post the payment?  Whatever the category is, you should use that same category to post the reimbursement you receive.  Yes, it is wrong to use an "income" category for it.

    In addition, if you follow my suggestion, you'll also be "fixing" the fact that you've been overstating the expense category that you have been posting the payment to, because a portion of the payment is actually someone else's expense - not yours.

    Let me know if you have any followups.

    Frankx

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Answers

  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    I would put it in the same category as the one you are using for paying the cell phone bill.

    Say the total bill is $100 and you pay that and categorize the transaction with a category of Cell Phone.
    A report would show you spending $100 on Cell Phone.

    Now you download the deposit from your friend for $50, and categorize it as Cell Phone, that is be entered as a negative $50 in the Cell Phone category.

    A report now will have the total of $50 for the category Cell Phone.
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  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @mjk53029

    Currently, when you make the payment to the cell phone vendor, to which category in Quicken do you post the payment?  Whatever the category is, you should use that same category to post the reimbursement you receive.  Yes, it is wrong to use an "income" category for it.

    In addition, if you follow my suggestion, you'll also be "fixing" the fact that you've been overstating the expense category that you have been posting the payment to, because a portion of the payment is actually someone else's expense - not yours.

    Let me know if you have any followups.

    Frankx

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • mjk53029
    mjk53029 Member ✭✭
    Thanks, I never thought of it that way. Thats going to help my budget also,