Demefi Member ✭
edited March 2023 in Business and Rental Property Tools (Windows)
When I make my credit card payment in my checking account, it is confuse for me how I can categorize this payment in my checking account. Should I categorize as "Transfer"? What kind of category should I use?
Thank you!
NotACPA SuperUser ✭✭✭✭✭
YES, it's a TRANSFER from your checking account to the card account.
Categories are used for income and expense items. A card payment isn't an expense, the expenses were recorded already in the card account.
The use of an Income category makes you wealthier. The use of an Expense category makes you poorer. A Transfer does neither. It merely moves the money from one account to another, much like moving your wallet from one pocket to another.
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP1
Answers
NotACPA SuperUser ✭✭✭✭✭
YES, it's a TRANSFER from your checking account to the card account.
Categories are used for income and expense items. A card payment isn't an expense, the expenses were recorded already in the card account.
The use of an Income category makes you wealthier. The use of an Expense category makes you poorer. A Transfer does neither. It merely moves the money from one account to another, much like moving your wallet from one pocket to another.
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP1
EJRTP Member ✭
I get confused on the correct way to categorize payment to the credit card and get further confused since Quicken automatically categorizes and often does it differently for the transactions. For the automatic payments to the credit card, Quicken automatically categorizes this to the credit card. When I make a payment to the credit card via check, Quicken categorizes this payment to the checking account but will sometimes automatically categorize it to the credit card. So should the auto payment and the bill payment both have the [checking account] as the category? Thanks
UKR SuperUser ✭✭✭✭✭
EJRTP said:
I get confused on the correct way to categorize payment to the credit card and get further confused since Quicken automatically categorizes and often does it differently for the transactions. For the automatic payments to the credit card, Quicken automatically categorizes this to the credit card. When I make a payment to the credit card via check, Quicken categorizes this payment to the checking account but will sometimes automatically categorize it to the credit card. So should the auto payment and the bill payment both have the [checking account] as the category? Thanks
Recommend that you manually record a Transfer transaction from your Checking account to your Category = [credit card account] BEFORE you download transactions from either Checking or credit card account containing transfer confirmations. The download process will find the existing register transaction and match the downloaded transaction to the one in the register without creating duplicates or miscategorized transactions.
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Demefi Member ✭
Thank you!
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