R
Tue Jan 03 06:36:31 CST 2006
Glenn,
You are confusing transfers and expenses. It is frustrating and
non-intuitive but there is no correct way to show deposits to savings as an
expense.
This is not Money's fault. From an accounting standpoint, when you transfer
money from your checking account to a savings account that is not an
expense. You are merely changing the location of an asset - the $100 cash
is still worth $100 and it still belongs to you no matter what account you
put it in or transfer it to. There is no way to add a category to a
transfer transaction because there cannot be a category since the
transaction is neither income nor expense.
Just to reiterate, when you say the transaction it money spent, technically
that is not correct. It is money taken from one account and placed in
another account both belonging to you. It is not an expense when leaving
the checking account and it is not income when entering the savings account,
merely a transfer.
But the transaction does represent cash flow and you can setup a weekly
transfer from checking to savings in scheduled bills and deposits to make
this easy. These transfers will show up in your cash flow reports and you
will see the decrease in your checking account and the increase in your
savings account balances but these transactions will not be seen on your
budget (except as transfers into/out of budget accounts) or as income or
expense in any type of income/expense report because they are transfers.
But, you can see transfers to specific accounts on income/expense reports
using the customization dialog if you set the account and transfer settings
correctly (use Include transfers to/from account that are not in the
report - exclude your savings acct from the report and the transfers will
appear).
There is a related concept which I will mention in case you are interested -
the difference between expenses and asset purchases. If you buy a
consumable item like food or electricity that is an expense, but if you buy
an item that has lasting market value like a car or furniture or a
telescope, that is an asset. So if you paid cash for a car, the transaction
would be recorded as a transfer from your checking account to an asset
account called Autos or similar. The actual purchase of the car is not an
expense because you have merely converted one asset, cash, into another
asset, the car - both worth the same amount and both belonging to you.
Subsequent depreciation on the car is, of course, an expense and it should
be written off periodically to an expense account called depreciation.
Hope this helps.
Regards,
Bill Wood
Fountain Hills, AZ
"Glenn B." <pkguy323@NOSPAMMyahoo.com> wrote in message
news:iSouf.16295$yW1.3272@trnddc05...
> Ok, I need to simplify this process for Money 2006 DX.
>
> #1-When I enter a transaction in my check register to transfer $100 to my
> Savings register, how to I add a category to that checking transaction
> that will show up in my checking budget as an categorized expense? After
> all, it is money spent...just paid to myself to be deposited into another
> account.
>
> I like the transfer because it negates double entry in Money.
>
> #2 How can I budget these weely tranfers to my savings account that will
> show up in my current and future monthly budgets..and show them as actual
> expenses?
>