editing preset categories vs. creating new categories

enirevets · June 2020

I am new to Quicken and just in process of setting up. I've already set up my categories, in some cases by editing certain of the original Quicken preset categories, in other cases by creating a new category from scratch via the "New Category" button. In looking around the community at one point, I came across someone saying they had subsequently run into problems with certain categories, depending on which of the above methods had been used. But now I can't find that thread. Does this sound familiar to anyone?

So far I have linked a couple - but only a couple - bank accounts; and I haven't assigned any categories to any transactions yet. I'm wondering if, before I do so, I should go back and re-do my categories using one or the other method exclusively? I.e., either ONLY edit preset categories to serve my purposes, or ONLY create new categories; not both? If anyone has any insight on this I'd appreciate it.

Boatnmaniac · June 2020

I don't subscribe to the either/or scenario since for me it is somewhere in between both extremes.

There are two main types of default (preset) categories in Quicken:

1) BOLD ONES STARTED WITH AN UNDERSCORE (such as _IntInc): These categories are locked and cannot be edited or deleted. This is because they are tax related categories and hard-linked to various Quicken tools and features (mostly regarding investments and certain paycheck categories in the Paycheck Setup Wizard). Any changes to or deletions of them could have a significant impact on the accuracy of Tax reports (like Tax Schedule and Tax Summary), Tax Planner and in the accuracy and functionality of other Quicken tools.

2) OTHERS: These are categories that are editable. Changing category names and creating new categories is OK and shouldn't cause any significant irreversible issues. Just take care that they are classified under the correct category group (make sure expenses are classified as an Expense, incomes are classified as Income, etc.) and Subcategories are correctly placed under the appropriate Category (i.e, Electricity should be a Subcategory of Bills).

Some of these categories are also pre-associated with Tax Line Items. I don't recommend changing them because of potential adverse impact to the same Tax reports and tools.
You can add new categories that are tax related but you will need to make sure the appropriate Tax line items are assigned to them during the category setup or edit process if you want Quicken to account for them properly in the Tax reports and Tax Planner.
For non-tax related categories: Add or change to your heart's content. Whatever you do is reversible so while it might take some time to fix something that was done it doesn't permanently break anything.

My suggestions:

When making changes to, deletions of or additions of categories, always backup your data file first. If something goes wrong or you decided to undo the changes that were made you can then recover the backup file quickly and save yourself a lot of time and headaches in trying to undo everything.
Try to use the applicable Tax Line Item default categories where you can and without changing them...except for possibly the changing name of the category (example, if you don't like "Salary" you can change it to "Gross Wages" or "Gross Pay" if that is more meaningful to you without adversely impacting anything else). Remember, you will be able to edit the names of only those categories that don't start with an underscore.
Try to avoid deleting categories you think you won't use. That process is irreversible and you might later regret it if you later change your mind. Instead, check the box in the Hide column of Category List. Then you can always unhide them later if you want or need to. Hiding also makes it easier when categorizing transactions...not so many categories to scroll through.
Special care needs to be taken when adding, deleting or changing Tax Line Item associations with categories because of the implications for Tax reports and Tax Planner. Make sure you understand the impact to other parts of Quicken before making any changes to them.

I hope this helps some. If you have specific questions about anything, let me know.

Boatnmaniac · June 2020

I don't subscribe to the either/or scenario since for me it is somewhere in between both extremes.

There are two main types of default (preset) categories in Quicken:

1) BOLD ONES STARTED WITH AN UNDERSCORE (such as _IntInc): These categories are locked and cannot be edited or deleted. This is because they are tax related categories and hard-linked to various Quicken tools and features (mostly regarding investments and certain paycheck categories in the Paycheck Setup Wizard). Any changes to or deletions of them could have a significant impact on the accuracy of Tax reports (like Tax Schedule and Tax Summary), Tax Planner and in the accuracy and functionality of other Quicken tools.

2) OTHERS: These are categories that are editable. Changing category names and creating new categories is OK and shouldn't cause any significant irreversible issues. Just take care that they are classified under the correct category group (make sure expenses are classified as an Expense, incomes are classified as Income, etc.) and Subcategories are correctly placed under the appropriate Category (i.e, Electricity should be a Subcategory of Bills).

Some of these categories are also pre-associated with Tax Line Items. I don't recommend changing them because of potential adverse impact to the same Tax reports and tools.
You can add new categories that are tax related but you will need to make sure the appropriate Tax line items are assigned to them during the category setup or edit process if you want Quicken to account for them properly in the Tax reports and Tax Planner.
For non-tax related categories: Add or change to your heart's content. Whatever you do is reversible so while it might take some time to fix something that was done it doesn't permanently break anything.

My suggestions:

When making changes to, deletions of or additions of categories, always backup your data file first. If something goes wrong or you decided to undo the changes that were made you can then recover the backup file quickly and save yourself a lot of time and headaches in trying to undo everything.
Try to use the applicable Tax Line Item default categories where you can and without changing them...except for possibly the changing name of the category (example, if you don't like "Salary" you can change it to "Gross Wages" or "Gross Pay" if that is more meaningful to you without adversely impacting anything else). Remember, you will be able to edit the names of only those categories that don't start with an underscore.
Try to avoid deleting categories you think you won't use. That process is irreversible and you might later regret it if you later change your mind. Instead, check the box in the Hide column of Category List. Then you can always unhide them later if you want or need to. Hiding also makes it easier when categorizing transactions...not so many categories to scroll through.
Special care needs to be taken when adding, deleting or changing Tax Line Item associations with categories because of the implications for Tax reports and Tax Planner. Make sure you understand the impact to other parts of Quicken before making any changes to them.

I hope this helps some. If you have specific questions about anything, let me know.

editing preset categories vs. creating new categories

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