Categorize - Credit Card payment on my credit card account

Demefi

When I make credit card payment, I understood that we need to categorize the transaction as "Transfer to credit card" in my checking account; however, I am not sure how I can categorize the credit card payment on my credit card account. Should I also categorize as transfer? If so, should I categorize it as transfer to my credit card account as well?

volvogirl

To enter credit card....

The proper way is to set up a credit card ACCOUNT and enter the charges into it when the purchase is made and assigning it to a category. The transactions need to be entered with the date you charged it, not the date you pay the credit card bill.

Then when you pay the bill you TRANSFER the payment from your checking account to the credit card account. Then when you download the payment from the bank you match it to the one you already entered.  Then your credit card account should match what you actually owe at any time.

When you enter the payment in your checking account you put the credit card account name in for the category using square brackets around the name to indicate it is a transfer...like this… [credit card] or newer versions have a Transfer column.

Ps56k2

@BobT1101 - just to clarify the "transfer" -
it is entered by merely entering the name of the destination Quicken Account in brackets.. as a Category -

as in .... [Visa99]

This "transfer" syntax can be used anywhere you want to show the transfer of funds from one account to another
as is shown in our Checking Account.. again, in the Category field -
--> to visa CC acct
--> to kids checking acct
--> to kids checking acct

UKR

Creating a Transfer transaction in Quicken creates a linked pair of transactions:

• in your checking account, categorized as [credit card account name here]
• and in your credit card account, categorized as [checking account name here]

There's nothing special you need to do.
However, IMHO, it's important that you record the payment transaction BEFORE you download transactions from either accounts containing the payment confirmations. Because you already have a proper pair of transactions in both of your registers, Quicken will just simply match the downloaded data to the already existing register transactions and not create any problems.

BobT1101

Can I use an export file (either qif or csv) from a credit card company to split a transaction/the payment of the credit card bill in my checking account

Ps56k2

which CC company - why not use the online download via Quicken One Step Update -

Have you setup this CC in Quicken with the Add Account ?

Normally, the CC is setup in Quicken - transactions/charges are downloaded into this account -
Later - when the CC bill arrives, you "pay" the bill with a "transfer" of funds from Checking into the CC account -
... just like in real life

Greg_the_Geek

You shouldn't use a split transaction to pay your CC bill. You should have a separate CC account with all the transactions. When paying the bill, it's a transfer from your checking account to the CC account.

newtoqkn

I have same question as above except involving past credit card payments from checking. Is there some easy way to recategorize all such payments from the past as Transfers? It seems that per above I would need to manually put in the transfer prior to syncing account transaction info but as these are in past not sure how to go about that, please help?

BobT1101

I am new to Quicken and was not aware/did not think to setup the CC in Quicken. Thanks for the information. I have done that now. If you have time, please provide a few more details on how I would pay the CC bill from my bank Quicken checking account. I currently pay through my bank with the bank sending the payment.

volvogirl

To enter credit card....

The proper way is to set up a credit card ACCOUNT and enter the charges into it when the purchase is made and assigning it to a category. The transactions need to be entered with the date you charged it, not the date you pay the credit card bill.

Then when you pay the bill you TRANSFER the payment from your checking account to the credit card account. Then when you download the payment from the bank you match it to the one you already entered.  Then your credit card account should match what you actually owe at any time.

When you enter the payment in your checking account you put the credit card account name in for the category using square brackets around the name to indicate it is a transfer...like this… [credit card] or newer versions have a Transfer column.

BobT1101

Thanks for the help. I think I have it and will find out for sure when a bill arrives.

Ps56k2

@BobT1101 - just to clarify the "transfer" -
it is entered by merely entering the name of the destination Quicken Account in brackets.. as a Category -

as in .... [Visa99]

This "transfer" syntax can be used anywhere you want to show the transfer of funds from one account to another
as is shown in our Checking Account.. again, in the Category field -
--> to visa CC acct
--> to kids checking acct
--> to kids checking acct

BobT1101

Thanks

Ps56k2

updated the topic title to better reflect the actual Q&A

Ps56k2

same general question here -

https://community.quicken.com/discussion/comment/20337847/#Comment_20337847

Ps56k2

newtoqkn said:

I have same question as above except involving past credit card payments from checking.

Well, what does everything look like now - before we can adjust things ?
- create Quicken Account for CC and download all credit card transactions
- when bill arrives create transfer “[cc-acct]” transaction in checking acct to pay bill. 

MERGED topics - so go back and read all entries 

Cshaw

I am so lost on this. I did set up cc account payments as transfers, but my current cc balances don't match the actual balances. Are we saying here that I shouldn't "update all" when I first sign on? How else do I "book the payment" before the expenses. (I'm a novice...)

jmrcrp

> @Cshaw said:
> I am so lost on this. I did set up cc account payments as transfers, but my current cc balances don't match the actual balances. Are we saying here that I shouldn't "update all" when I first sign on? How else do I "book the payment" before the expenses. (I'm a novice...)

I'm still pretty much a newbie myself, but I think it's okay to "update all" when you sign on each time. Then what you have to do is "reconcile" your monthly credit card statements, the same way you reconcile your bank account statements. That way you can find any errors or discrepancies in the CC account in Quicken, and make sure the Quicken balance matches up with the actual balance.

If I'm wrong on this, I'd appreciate a correction from users with more experience.