Payables, Categories, and Cash Basis Accounting

I'm getting ready to call it a night, so I'll just leave you with a thought or two.

You can exclude all transfers from reports using the Advanced tab of the report Customize dialog.

If you need more precision than that, you can exclude transfers to specific accounts by de-selecting them on the Categories tab in the Customize dialog.

[Transfers are categories, just as any other category: they appear (possibly depending on Quicken version) at the foot of the drop down Category list, on the Categories tab.]

Alternatively; you can create you own personal identifier to be placed in the Memo field of certain transactions (certain transfers, in your case), which can be used to exclude, or include, transactions in reports. You would use the "Memo Contains" field on the Categories tab in the report Customize dialog to accomplish this.

In theory you should be able to do that by using either cash or accrual when setting up the report but in case that doesn't work.

What you should be able to do (and the reason I say should is that the last version of Quicken H&B I had that reported more or less correctly was 2005) is to use a different class (tag now) for the items entered into your payables and the ones entered when you actually write a check.

For example:

Incur expense for ink of $10.00: Debit payables: $10.00 Office:Supplies/Payable $10.00

Pay bill Debit check>Is it possible--and, if so, how--to list payables in Quicken and also

Sorry but your last posting to the cash acct doesnt balance. I think you meant to say

Debit checking register $10.00 Credit payables -$10.00

Mark

Good use of Tags/Categories.

Hi, Stewart.

Sorry, but your entries would get you an F in Accounting 101. :^{

Debits increase assets or expenses and decrease liabilities or revenues. Credits do the opposite, of course. Also, "payables" are liabilities, not expenses. Although the same purchase that increases office expense (with a debit) also increases accounts payable (with a credit).

So your entries should be more like:

Incur expense for ink of $10.00: Debit Office Supplies expense: $10.00 Credit Office Depot Payable: $10.00

Then: Pay bill Debit Office Depot Payable:: $10.00 Credit Checking account: $10.00

After these two entries, the balance in Office Depot Payable would be zero, because you don't owe the store anymore. Your bank account would be $10 smaller, because you've paid the bill. And you would be showing that you incurred $10 of office expense.

In cash basis accounting, you would make no entry at all until you write the check, then debit it directly to Office Expense.

If you bought the ink in December and paid in January, the accrual method would end the year with $10 in expense and $10 in payables. The cash method would show no expense at all in the earlier year and the whole $10 in the second year.

RC

You people are amazingly helpful. I have to study your various responses and experiment in the program. Thank you very much.