how to enter a credit card transaction where only part of the bill is my expense
Hi!
Can someone please suggest how i can account for the following transactions?
Issue :
I pay for a meal with my credit card and my friends pay me back for
their part of the meal.
I will like to enter the actual amount billed to me under the Credit Card section so that I can easily reconcile my credit card bill at the end of the month. However, I do not wish to have the total amount spent logged as an expense as this would be be an inaccurate picture of my expenses. It will also affect my budget and budget report.
How can I enter the transaction?
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2 Posted by robwilkens on 26 Jan, 2012 05:09 PM
Here's what i would do - when your friend pays you back and you apply their payment to the credit card (or whatever account it goes in) categorize their payment back as an expense category. For example, if you charged $50 to dining and they paid you back $25 then mark both as 'dining', this will result (in theory) in a $50 charge to dining on your budget, and a $25 credit to dining on your budget. If, on the other hand, your friend pays you back in cash and you just keep the cash, then i'd 'split' the transaction and mark $25 as dining and $25 as something like cash withdrawll (because you're essentially converting your credit into cash at that point).
3 Posted by jbnyt on 26 Jan, 2012 05:19 PM
What I do is the following: when cc transaction comes in I categorize entire cost under Dining with a note in the memo saying something like Full Meal Cost Including So & So's share. In my separate Cash acct that I have set up I enter a deposit with a description of "My Friend's Share of Dinner (with the date)." (You may want to put this in either a bank or checking acct.) I also categorize this to the same Dining account. This will then show up in the Budget and I&E reports as follows:
cc acct: -$100 Dining Expense
Cash acct: +$75 Dining Income
Net = -$25 Dining
4 Posted by tod on 26 Jan, 2012 05:33 PM
I enter that type of thing as a split transaction: The part for my meal I categorize under dining out (an expense) and then I have a transfer to my cash account for whatever I collected from the other people.
This works for me because I track cash transactions in a "bank" account. So a ATM withdrawal turns into a transfer from checking to cash. Then when I spend some cash I enter the amount in the cash account register as an expense (e.g. groceries, etc.). So being reimbursed by others for their meals at a restaurant simply turns into a transfer from the credit card account to the cash account and does not show up on my income or expenses.
Support Staff 5 Posted by Angie Rauscher on 26 Jan, 2012 06:53 PM
PinkConfetti,
Both of these are good suggestions- I personally use the method Tod describes. It keeps my transactions properly logged in the credit card account and my budget accurately applied. If you have any other questions do let me know,
Angie Rauscher
Moneydance Support
Angie Rauscher closed this discussion on 26 Jan, 2012 06:53 PM.
pinkconfetti1 re-opened this discussion on 27 Jan, 2012 05:41 AM
6 Posted by pinkconfetti1 on 27 Jan, 2012 05:41 AM
Thank you everyone =)
pinkconfetti1 closed this discussion on 27 Jan, 2012 05:41 AM.