How do you handle income from 2023 that applies to the 2024 budget?

jmulheron
jmulheron Quicken Windows Subscription Member
edited February 11 in Budgeting and Planning Tools (Windows)

We have an expected income from 2024 dues. Some people paid their 2024 dues in Nov/Dec 2023. I have categorized them as Membership Dues: 2024 but with budget reports I don't know how to pull in these items.

Best Answer

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited January 11 Answer ✓

    I expect that when you deposit Membership Dues you make an entry along the following lines:

    Debit (increase) Checking Account $XXX
    Credit (increase) Membership Dues Category $XXX

    To defer those amounts from showing up in 2023 income, create a new generic liability Account, an Account that isn't connected to any financial institution. Then go back to those November and December deposits and change the Category field to the name you've given the new liability Account, surrounded by square brackets: [Name of Liability Account] (You might name this Account "Deferred Revenue" since that's exactly what it is.)

    That will take the dollar amounts out of 2023 income and defer them, carried on the balance sheet. Then in 2024 go into that liability Account and zero out the dollars, recognizing the income in 2024:

    Debit (decrease) Deferred Revenue Account $XXX
    Credit (increase) Membership Dues Category $XXX

Answers

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited January 11 Answer ✓

    I expect that when you deposit Membership Dues you make an entry along the following lines:

    Debit (increase) Checking Account $XXX
    Credit (increase) Membership Dues Category $XXX

    To defer those amounts from showing up in 2023 income, create a new generic liability Account, an Account that isn't connected to any financial institution. Then go back to those November and December deposits and change the Category field to the name you've given the new liability Account, surrounded by square brackets: [Name of Liability Account] (You might name this Account "Deferred Revenue" since that's exactly what it is.)

    That will take the dollar amounts out of 2023 income and defer them, carried on the balance sheet. Then in 2024 go into that liability Account and zero out the dollars, recognizing the income in 2024:

    Debit (decrease) Deferred Revenue Account $XXX
    Credit (increase) Membership Dues Category $XXX

  • jmulheron
    jmulheron Quicken Windows Subscription Member

    This is great! And makes totally sense.

This discussion has been closed.

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