Money: How to Categorize or Classify a Transfer Transaction (77796)

MORE INFORMATION

This article describes how to use alternate methods to categorize or classify transfer transactions in your Money file. To do this, use one of the following methods.

Use Classifications for Transfer Transactions

To create a Classification field and use this field to categorize transfer transactions, use the appropriate method for your version of Money.

Limitations of this workaround:

• When you generate a report, you cannot group your categories and classifications together to create a lump sum total.
• You must always use the classification field to classify your transactions. If the transaction is not a transfer, you must classify it as a non-transfer transaction.
• You cannot assign budget amounts to classifications.

Money 98 or later

1. The first step varies depending on what version of Money you use.
   1. For Money 2001 or later: On the Money navigation bar, click Accounts & Bills, click Categories & Payees, and then click either Classification 1 or Classification 2 in the left pane.
   2. For Money 2000: On the Money navigation bar, click More, click Categories & Payees, and then click Classification 1 or Classification 2 in the left pane.
   3. For Money 98 and Money 99: On the Money navigation bar, click Categories, and then click Classification 1 in the left pane.
      
      If Classification 1 is already defined, click Classification 2.
2. Under Type, click a classification name such as the name of the account to which you are transferring funds. You can also type a name in the blank text box.
3. Click OK.

Money 97

1. On the Categories And Payees screen, click either Classification 1 or Classification 2.
2. Under Type, click a classification name such as the name of the account to which you are transferring funds. You can also type a name in the blank text box.
3. Click OK.

Example:

If you create a Home Maintenance classification that includes a Home Improvement class with a Fireplace subclass, and then record a transaction for the purchase of a new fireplace, the following example shows how you record the check in the account register. To track the cost of the fireplace, transfer the funds to the Our House asset account. To classify the transfer, click Home Improvement in the first Home Maintenance classification box, and then click Fireplace in the second box.

                                                     Number: 102
                                                     Date  : 10/11/91
   Pay to          :   Ace Hardware                  Amount: $200
   Category        :   Transfer        : Our House
   Home Maintenance:   Home Improvement: Fireplace
   Memo            :   New Fireplace
				

Use a Split to Categorize a Transfer Transaction

Split the transaction to record the transaction as a transfer to the other account, as a categorized non-transfer transaction, and add an adjustment transaction to balance the amount of the main transaction. To do this, follow these steps:

Limitations of this workaround:

• Money includes the Bogus category when you run a report.
  
  
• You cannot categorize the transaction in the account that receives the transaction.

1. Create a new transaction in your account register.
2. In the Category box, type split or press the Split button, and then press ENTER.
3. On the Split Transaction screen, on the first row under Category, click Transfer in the first box, and then click the account you want to receive the funds in the second box.
   
   Under Description, type a memo, and then under Amount, type the amount for the transaction.
4. On the second row under Category, click the category and subcategory you want to use for the transaction, type a memo under Description, and then under Amount, type the same amount for the transaction that you typed on the first row.
5. On the third row under Category, click Bogus, type a memo under Description, and then under Amount, type the negative of the number you typed on the first two rows.
   
   NOTE: If Bogus is not in the list of categories, type Bogus in the first box, press ENTER, and then follow the instructions on the screen to create the new category.

Example:

If you record the transaction as both a transfer to the Our House asset account and as an expense transaction in the Household: Home Improvement category, you also record a negative value transaction in the Bogus category to correct the split total.

Transaction in the account register:

                                                     Number: 102
                                                     Date  : 10/11/91
   Pay to          :   Ace Hardware                  Amount: $200
   Category        :   Split
   Memo            :   New Fireplace

				

Split Transaction screen:

   Category                        Description      Amount
   --------------------------------------------------------

   Transfer To: Our House          New Fireplace    $200.00
   Household  : Home Improvement   New Fireplace    $200.00
   Bogus      : Bogus                              -$200.00

                                          Total:    $200.00