How to enter delayed deposited year-end paychecks

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BK
BK Member ✭✭✭✭
edited February 2022 in Registers & Transactions (Windows)
My employer had a glitch where my final two paychecks of 2021 came in snail mail instead of direct deposit.  And since I was away, I deposited them in January 2022.  My question is how to enter these two paycheck deposits in Quicken such that they count as 2021 income, yet maintaining the correct year-end balance in my bank account.
The following is how I did it and I welcome better suggestions, approaches and reasons; or a confirmation that I did it right. TIA
- QWin Deluxe user since 2010, US subscription on Win11
- I don't use Cloud Sync, Mobile & Web, Bill Pay/Mgr

Best Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Answer ✓
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    Some people create an "in transit" or "suspense" account to handle situations like this. You could record the paychecks as deposits in the suspense account last year then transfer the money to your checking account when you actually received them.

    This can also work for charitable contributions written in one year but not cashed until the next year.
    QWin Premier subscription
  • UKR
    UKR SuperUser ✭✭✭✭✭
    Answer ✓
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    OK, so you entered them in January, but they belong to tax year 2021.
    This being a one-time glitch, one hopes, I would just simply date the deposits 12/31/21 so that they appear in last year's tax reports. Never mind the fact that the actual deposit date was in January.
    IMHO, that'll keep it simple and your account register will balance to the bank statement on 1/31/22 without the need for any adjustment transactions or intermediate accounts.
  • BK
    BK Member ✭✭✭✭
    Answer ✓
    Options
    Thank you and I appreciate both alternatives.  @Jim_Harman 's meets my preference of having the correct Year-End balance but requires creating a new intermediary account.  @UKR 's is the cleanest and simplest but does not meet my desired Year-End balance preference.  For now I'll keep it as is unless I run into some reporting issue due to the the self-referenced category.  Cheers.
    - QWin Deluxe user since 2010, US subscription on Win11
    - I don't use Cloud Sync, Mobile & Web, Bill Pay/Mgr
  • splasher
    splasher SuperUser ✭✭✭✭✭
    Answer ✓
    Options
    If you create the intermediary (pass thru) account, it is a one time thing and can be used in the future if needed.  Some users write in complaining that when they send money from one FI to Another FI, Quicken uses the same date for both the out and in when in actuality they might be a several day delay.  That is a time when using this intermediary account would be used.
    Businesses are advised to use them so that their incoming receipts can properly identify the submitter of a payment since lumping them all together in a split transaction deposit can only have one Payee.
    So, having one is useful in a lot of cases.
    Personally, I use my pocket cash account to do this when I feel the need to do so.

    -splasher using Q continuously since 1996
    - Subscription Quicken - Win11 and QW2013 - Win11
    -Questions? Check out the Quicken Windows FAQ list

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Answer ✓
    Options
    Some people create an "in transit" or "suspense" account to handle situations like this. You could record the paychecks as deposits in the suspense account last year then transfer the money to your checking account when you actually received them.

    This can also work for charitable contributions written in one year but not cashed until the next year.
    QWin Premier subscription
  • UKR
    UKR SuperUser ✭✭✭✭✭
    Answer ✓
    Options
    OK, so you entered them in January, but they belong to tax year 2021.
    This being a one-time glitch, one hopes, I would just simply date the deposits 12/31/21 so that they appear in last year's tax reports. Never mind the fact that the actual deposit date was in January.
    IMHO, that'll keep it simple and your account register will balance to the bank statement on 1/31/22 without the need for any adjustment transactions or intermediate accounts.
  • BK
    BK Member ✭✭✭✭
    Answer ✓
    Options
    Thank you and I appreciate both alternatives.  @Jim_Harman 's meets my preference of having the correct Year-End balance but requires creating a new intermediary account.  @UKR 's is the cleanest and simplest but does not meet my desired Year-End balance preference.  For now I'll keep it as is unless I run into some reporting issue due to the the self-referenced category.  Cheers.
    - QWin Deluxe user since 2010, US subscription on Win11
    - I don't use Cloud Sync, Mobile & Web, Bill Pay/Mgr
  • splasher
    splasher SuperUser ✭✭✭✭✭
    Answer ✓
    Options
    If you create the intermediary (pass thru) account, it is a one time thing and can be used in the future if needed.  Some users write in complaining that when they send money from one FI to Another FI, Quicken uses the same date for both the out and in when in actuality they might be a several day delay.  That is a time when using this intermediary account would be used.
    Businesses are advised to use them so that their incoming receipts can properly identify the submitter of a payment since lumping them all together in a split transaction deposit can only have one Payee.
    So, having one is useful in a lot of cases.
    Personally, I use my pocket cash account to do this when I feel the need to do so.

    -splasher using Q continuously since 1996
    - Subscription Quicken - Win11 and QW2013 - Win11
    -Questions? Check out the Quicken Windows FAQ list

This discussion has been closed.

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