How would you categorize a transfer of funds via zelle?

DangerrussDangerruss Member ✭✭
edited January 16 in
My son sends me funds every month via Zelle for his portion of the wireless bill.  How would you categorize this transaction?

Comments

  • AndrewAndrew Member ✭✭
    edited January 14
    So I split the original expense specifying my kid's portion with a tag of "kids", and an expense of "Misc Expense". When I get paid from them, I tag the income again as "kids" with a category of "Misc Income" . So then when I do reports, I do not select the tag "kids" to determine any of my income or spending by excluding these income and expense transactions .. Works for me, but I'll be interested in seeing others ideas.
  • SimonSezSoSimonSezSo Member ✭✭
    edited January 14
    I would use the same category as you used for paying the wireless bill.  That way you can easily tell what  your actual "out-of-pocket" wireless expense was.
  • Tom YoungTom Young SuperUser ✭✭✭✭✭
    edited January 15
    And I would not use a Category at all to track what your son owes you. 

    When I paid the wireless bill I'd split the dollar amount between whatever Category you use to to capture YOUR expense for cell phone service and an Asset Account that's really a "receivable" from your son.  When your son pays you - I assume the money actually shows up in your bank account - I'd enter the "deposit" with the offset to the Asset Account, which should zero out that Account.

    That makes for a clean "real time" distinction between YOUR expense for cell phone service and also clearly indicates how much your son owes you, or doesn't owe you if he's paid.

    Want to know how much "cellular service" cost the family?  Simply run a report of payments to the cellular carrier.
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited January 14
    That the payment is via Zelle is, for Q recording purposes, immaterial.
    You've received a deposit (it could just as well have been via cash or a check). 

    So, record it as a deposit using your wireless category.  That will reduce the total amount that YOU'VE spent on wireless by the amount of the deposit.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • AndrewAndrew Member ✭✭
    edited January 14
    Tom Young said:

    And I would not use a Category at all to track what your son owes you. 

    When I paid the wireless bill I'd split the dollar amount between whatever Category you use to to capture YOUR expense for cell phone service and an Asset Account that's really a "receivable" from your son.  When your son pays you - I assume the money actually shows up in your bank account - I'd enter the "deposit" with the offset to the Asset Account, which should zero out that Account.

    That makes for a clean "real time" distinction between YOUR expense for cell phone service and also clearly indicates how much your son owes you, or doesn't owe you if he's paid.

    Want to know how much "cellular service" cost the family?  Simply run a report of payments to the cellular carrier.

    Which is what my use of a tag I explained does as well without the need of a different receivable account. You can run the report on just that tag to see the kids payments and expenses too, and for much they still owe you. True that your idea mimics a true world accounting mechanism, however.


    It goes to show you the you the power of Q and what you can do with differing approaches.
  • Tom YoungTom Young SuperUser ✭✭✭✭✭
    edited January 15
    Tom Young said:

    And I would not use a Category at all to track what your son owes you. 

    When I paid the wireless bill I'd split the dollar amount between whatever Category you use to to capture YOUR expense for cell phone service and an Asset Account that's really a "receivable" from your son.  When your son pays you - I assume the money actually shows up in your bank account - I'd enter the "deposit" with the offset to the Asset Account, which should zero out that Account.

    That makes for a clean "real time" distinction between YOUR expense for cell phone service and also clearly indicates how much your son owes you, or doesn't owe you if he's paid.

    Want to know how much "cellular service" cost the family?  Simply run a report of payments to the cellular carrier.

    The advantage as I see it is that you don't have to set up a custom report to see how much the kid owes.  That amount is always visible to you, right on your balance sheet. 

    Plus, tags are not well-controlled by Quicken, at least not to the extent that subcategories are.  Forget to enter that tag one of the times you pay that bill?  Quicken's not going to warn you.  Reach over and click on the wrong tag by mistake?  Quicken's not going to warn you.

    Even with memorized payees with the split all set up - you do that for either the "tag" or "Account" method, you do have to at least go to the extra effort of customizing a report that spells out where the two of you stand and then remember to run that report to understand if the kid's gotten a few payments behind.
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