Liabilities in Net Worth calc includes "spending"

Historical net worth graph is all over map. Liabilities include Spending, which seems to be large total of all expenditures during given period, which then bleed down over time til it hits zero. Is there way to correct this?

Running 2019 Quicken Premier ver R20.15 on Win 10 machine

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  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    I think you need to explain more clearly what's going on hereA, including which particular "net worth graph" you're referring to.   A picture can be worth a thousand words.

    "Spending" - and by that I assume you're referring to the ACCOUNTS comprising the "Spending & Savings" groups of Accounts in Quicken - should be included as Liabilities if any of those Accounts have a credit balance.  (I'm using "credit balance" in the strict accounting sense, meaning that those balance sheet Accounts show you owing money.)

    And if you use your credit cards heavily for a period you'd expect those Accounts to have large credit balances which would be reduced over time as you made your payments.

    I'm just not sure what it is you're seeing here.
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    And, taking the title of this thread literally, If you spend $1 on something, your Net Worth is reduced by $1.  If you spend $10,000, your Net Worth is reduced by $10,000.

    What would you expect to see?

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • leastein
    leastein Member ✭✭
    Sorry for lack of clarity. Net worth should be assets minus liabilities. Spending is not a liability. Mortgage and credit card debt is. As I've dug into this, I have bank accounts that have been changed by the program to have a large, negative opening balance. This diminishes over time with inflows until it shows a proper account balance. But these negative opening balances on the bank accounts kills the validity of the historical net worth numbers.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Is "No security (includes cash)" included in the securities for the report? It gives strange results if not.
    QWin Premier subscription
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    "Spending is not a liability. "
    BUT, "spending" either increases your liability (if you use a credit card, or such) OR reduces your Assets (if you use cash or a checking account).
    Spending DEFINITELY impacts your Net Worth.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    " But these negative opening balances on the bank accounts kills the validity of the historical net worth numbers. "
    More importantly, it misstates the running balances of all those checking accounts, something I'd think you'd have noticed somewhere along the line.
    If opening balances have been changed for several bank accounts that suggests some sort of data corruption, not simply a stray cosmic ray.  I'd suggest copying your file and validating the copy.
    I'd guess that won't fix the misstated opening balances so you'll have to do that along with whatever file cleanup is needed. 
  • leastein
    leastein Member ✭✭
    Not exactly. The current balances are fine and have been over time. The problem seems to that when I did year end copies a few years ago, I somehow only deleted payments from current accounts, not the income. So to keep accounts balanced, the program automatically changed the opening balance with a large negative number which was whittled down over time with the inflows. Works out, but the net worth history has the big step downs from time to time which then climb back as the year proceeds.
  • leastein
    leastein Member ✭✭
    Wish I'd known before ... can't tell you the hours I've wasted trying to solve. But thanks for your affirmation. Helpful.
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