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Posted by Walter_Slipperman on August 7, 2008, 10:52 pm
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I am new to quicken and I am starting to categorize the items listed on my
credit card. I have one item where I went out to dinner with people and I
paid the whole bill on my credit card while others reimbursed me their
share. So my credit card bill and entry in quicken shows $120, while I
really only paid $20 because I recieved $100 in cash. I guess I should be
adding $100 to a separate cash account. But this $120 on the credit card
account is categorized as Dining so how will I show that I only spent $20?
Walter
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Posted by R. C. White on August 8, 2008, 12:28 am
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Hi, Walter.
Your credit card company doesn't know (or care) about those other people.
They still expect the full $120 from you, so record a Split transaction in
that credit card Account. Charge $20 to Dining and $100 to your Asset
Account named Cash.
If the other diners did not reimburse you immediately, you would need to
Split the entry further to show the amount due from each in an Asset
Account. When you collect from each, you would record it in your Cash
Account with a credit to the appropriate receivable.
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Quicken 2008 Deluxe in Vista Ultimate x64 SP1)
> I am new to quicken and I am starting to categorize the items listed on my
> credit card. I have one item where I went out to dinner with people and I
> paid the whole bill on my credit card while others reimbursed me their
> share. So my credit card bill and entry in quicken shows $120, while I
> really only paid $20 because I recieved $100 in cash. I guess I should
> be adding $100 to a separate cash account. But this $120 on the credit
> card account is categorized as Dining so how will I show that I only spent
> $20?
>
> Walter
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Posted by Walter_Slipperman on August 8, 2008, 1:25 am
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> Hi, Walter.
>
> Your credit card company doesn't know (or care) about those other people.
> They still expect the full $120 from you, so record a Split transaction in
> that credit card Account. Charge $20 to Dining and $100 to your Asset
> Account named Cash.
>
That makes sense. Thanks. I have not used a Split before.
Another question: I used my credit card for something that I purchased for
the company that I work for. I later filled out an expense report at work,
and then received a check from the company that I work for, that I then
deposited in to my checking account.
How should I treat the entry in the credit card account? and how should I
treat the deposit in the checking account?
Thanks,
Walter
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Posted by R. C. White on August 8, 2008, 8:30 am
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Hi, Walter.
The same idea applies, of course. You put the charge on your card, so you
owe the card company. But it was not YOUR expense; it was the company's
expense. So you have three ways to choose from.
1. When you pay the company's expense, whether by cash or credit, don't put
it in an expense category. Create - or add to - an Asset Account with an
appropriate name, such as Due from Company. Then, when you get the
reimbursement and record it in your Cash or Checking account, credit it back
to Due from Company. This way, the expenditure never shows up in your
expense category at all, which is as it should be.
2. Create a new expense category called something like Reimbursable
Expenditures. When you get the reimbursement, credit it to this category.
At year-end, the category SHOULD have a zero balance.
3. Charge your expense category, just as if it were your own expense. Then
when you get repaid, credit this category. This is not the correct
treatment, but it SHOULD zero out anyhow.
It's your set of books, Walter, so it's your choice. But the first way is
the correct one. It may be a new idea for a non-accountant, but it's the
way that gives you the clearest picture at all times of your expenses and
your assets.
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Quicken 2008 Deluxe in Vista Ultimate x64 SP1)
>
>> Hi, Walter.
>>
>> Your credit card company doesn't know (or care) about those other people.
>> They still expect the full $120 from you, so record a Split transaction
>> in that credit card Account. Charge $20 to Dining and $100 to your Asset
>> Account named Cash.
>>
>
> That makes sense. Thanks. I have not used a Split before.
>
> Another question: I used my credit card for something that I purchased
> for the company that I work for. I later filled out an expense report at
> work, and then received a check from the company that I work for, that I
> then deposited in to my checking account.
>
> How should I treat the entry in the credit card account? and how should I
> treat the deposit in the checking account?
>
> Thanks,
>
> Walter
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Posted by Rick Hess on August 8, 2008, 12:04 pm
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(snip)
> 3. Charge your expense category, just as if it were your own expense.
Then
> when you get repaid, credit this category. This is not the correct
> treatment, but it SHOULD zero out anyhow.
I did a variation of this by appending a class with the CO's name (such as
/Aerojet). Personal reports simply omit the class Aerojet. A class report
for just Aerojet created my expense/reimbursement report for that CO.
--
Rick Hess
New Orleans
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