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Credit card accounts

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Aaron Schantz

22 Sep, 2024 02:03 PM

I have been using Moneydance since early 2024. I use it for my bank accounts and credit card accounts. My question is about my credit card transactions. When I record my transactions, I categorize them as budget categories. When I pay the card, I use the same categories as the original transaction for the payment. This creates double expenses in my budget. Is there a way to avoid that?

Thanks,

1. 1 Posted by derekkent23 on 24 Sep, 2024 07:45 AM

   

   I am not support staff, just a user.
   Hi Aaron

   When you transfer money from one account to another the name in the category field should be entered as the name of the other account from the dropdown list.

   See https://infinitekind.tenderapp.com/kb/register-and-transactions/tra...

   Hope this helps.

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2. 2 Posted by Aaron Schantz on 24 Sep, 2024 07:54 PM

   

   Derek,
   So, I shouldn’t be categorizing my payment to the bank as an expense, but a transfer to the card account. I understand.

   Thanks,
   Aaron

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3. 3 Posted by dwg on 24 Sep, 2024 08:30 PM

   

   When you make a purchase on a credit card you are categorizing what the expense is at that time. When it comes time to pay off the credit card this as not strictly an expense, if it was you would be counting everything twice, once when the original purchase is made then again when you pay off the credit card.

   When you pay off the credit card, it is using an asset (bank account) to pay down a liability (credit card account) hence it is a transfer not an expense.

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4. 4 Posted by derekkent23 on 24 Sep, 2024 10:06 PM

   

   I am not support staff, just a user.
   Hi Aaron

   As explained by dwg you should not be categorizing your payment from your bank to your credit card provider as an expense, but a transfer to the card account.

   Hope this helps.

   • Edit

5. System closed this discussion on 24 Dec, 2024 10:10 PM.