How do you categorize balance adjustments

I periodically update the value of assets like cars. I never know how to categorize the adjustments. For example, the value of my pickup changed according to KBB, and that created a register entry for the adjustment. Is it miscellenous income/expense, or something else?


  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭

    Or you can actually categorize it back into the same account. Then it is a one sided entry and won't go anywhere. Or set up a category for Asset Adjustments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭

    I usually categorize them back to the same account.

    If I regularly had Balance adjustments associated with reconciling, I'd likely create a category specifically for them.

  • Bert Onstott
    Bert Onstott Member ✭✭
    I guess I wasn't clear. I don't like to have uncategorized transactions, so I assign a transaction to everything. I also like to use Income-Expense reports to keep track. I guess I would like to have a way to exclude the balance adjustments from the income-expense report, as it's not real income or expense. Not tracking net worth, where it would be needed. See the attached.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭

    And our comments were to use [Chevy Pickup] in the category where you have Misc Inc:Other Inc so that the Balance Adjustment transaction does not appear under the Misc Inc category in many reports. Depending on other settings, it may appear in a listing of Transfer transactions, but that also can be customized away.

    Or you set up a select category (BalAdj) and exclude that category from your report.

    FWIW: I am not a user of various dashboard cards that may not be as easily customized as most reports, so no promises about using a select category if you are reliant on dashboard type views.

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭

    The "correct" accounting for this situation would be to Categorize the adjustment to either a Category called "Depreciation" if you're tracking that cost for business or other purposes, or to a Category called something along the lines of "Unrealized Appreciation/Depreciation." Then simply don't allow that Category into an Income and Expense report.

    Another approach - equally valid - would be to create a new Account in which you make entries for value adjustments, using whatever Category you care to use, and then Customize the Income and Expense report to not look at that Account as a source of entries. That approach will also exclued the adjustment.

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