What sort of account do I use to create intermittent payments?

Question

Easy question here, but I don't know the answer to it. When necessary we will take our car for maintenance at a local auto shop. We did this today. I'd like to create an account for tracking payments, when we have them. But we don't normally have any payments to send to them.

For me, that's the problem. When I have created accounts for payments in the past using Quicken, it would always be a loan or something like that. That isn't appropriate in this case. At least to me it doesn't make sense to do a loan. So, I don't know what to use. So, what sort of an account template do I use to track what we owe the auto shop, but when we've finished paying it off, it will sit there inactive until the next time?

nmestanas · Answer

Like @splasher says.  I have a category for auto repairs, auto parts, auto insurance, auto fuel and a few others (all are subs under Auto).  Then, I use the Tags to ID which vehicle.  The memo field describes the service (tune-up, tire change, AC service, etc.) or the parts purchased (engine oil, air filter, starter etc.).  I mostly do my own work but I will split the transaction if parts and service are on the same invoice or I buy parts for more than one vehicle.

A custom report shows the details on total cost, cost breakdown by category, cost breakdown by vehicle and whatever else you need.

splasher · Answer

I think you are confusing formal accounting procedures with how Quicken is intended to work.

Rather than creating an account, you should have a category for Automotive Repairs or something similarly named.  I'm not sure what is in the default Quicken categories to start with, but I wouldn't doubt that there is already something appropriate.  Running a category report will show you what your automotive expenses have been.  You would use a similar category for fuel.

Jim_Harman · Answer

[edit] Remember that in Quicken terminology, Accounts are usually physical bank, credit card, etc. accounts, not categories of income or expenses as in formal accounting terminology.

Do you have accounts set up in Quicken for your credit cards? Most people would pay the repair shop with a credit card and record the transaction in the credit card account on the date they picked up the car, with an appropriate Category.

Did you agree to pay the shop at some future date, or over time? In that case you could create a Reminder for the future payments or enter them in your checking account with future dates. Or you could create an offline credit card account called "Payables" or whatever and record the whole repair shop bill there, with an appropriate Category. Then when you make payments to the shop, you would enter them as transfers from your checking account to the Payables account. You could combine this with a Reminder to make the payments.