For some transactions there are several days between when the transaction is initiated and when it completes. For example, a wire transfer from a brokerage account to a bank, especially over a weekend. God knows where the money is, electronic blips someplace.
Any comments on using a limbo account to account for the money while it is in transit? brokerage -> limbo several days limbo -> bank account
Hi, Harry.
Sounds like a good idea to me. The name is not important - except to you.
There are several situations in Quicken - and in pen-and-paper accounting, and in the Real World - where we need to recognize such disconnects in the Time/Space Continuum. ;^} Other examples include escrow or impound accounts, down payments or other such deposits against future expenditures, or even not-yet-deposited checks. Most accountants will have an asset or liability account with some title like "Suspense" - but "Limbo" is as good as any.
RC
Thanks. Suspense Account. I didn't know the technical term. Appreciate your response.
Are you also going to use the limbo/suspense account when: a) you make an transaction at the ATM after the cutoff, so that it doesn't post until the next day b) when you make a credit card transaction that doesn't post for a day or two c) when you mail a deposit to your brokerage account d) when you write a check for a bill e) when you write a check to a niece/nephew/child/etc for a present f) etc, etc, etc.
Very few transactions post on the day that they're initiated (to use your terminology).
While it's certainly your perogative to use the limbo/suspense account any way that you want ... I can readily see you doubling the amount of data without adding anything useful to the information.
Why wouldn't it be useful? Because, even for tax purposes, it's the transaction date that matters. NOT the posting date. If you receive a paycheck on 12/31, it's taxable as of 12/31. Not 1/3 of the next year when it posts to your account. Same for charitable contributions made
12/31, etc.db
Good point. I was thinking of unusual transactions, for example a large amount of money.
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