Microsoft Money: How Do I Record a Check That Pays Multiple Categories?

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Microsoft Money: How Do I Record a Check That Pays Multiple Categories?

You’ll typically need to record a check that pays multiple categories. For example, suppose you use Money for tracking the finances of a small business corporation you operate and you write a check to the office supplies store, but the check (in the amount of $100) pays for $50 of supplies and $50 of equipment. Clearly, you want to record the check as falling into both of these categories.

The Basics of Recording Checks That Pay Multiple Categories

To deal with this real-life, everyday occurrence, the Withdrawal tab includes a Split button just to the right of the Subcategory field. If you click the Split button, Money displays the Transaction With Multiple Categories dialog box. This dialog box lets you specify more than one category and category amount for a check.

Each category of spending for a check gets recorded on its own line in this dialog box. In the case of a purchase of $50 of supplies and $50 of equipment, for example, correctly recording the $100 check would mean you enter the transaction so the first line of spending information shows $50 of supplies expense. The second line of category spending information would then show $50 of equipment expense.

When you finish recording the multiple categories of spending for a check, click the Done button. Money then closes the Transaction With Multiple Categories dialog box.
However, to show that you have recorded multiple spending categories for the check, Money puts the phrase split/multiple categories in the Category box. Everything else about recording a check with multiple categories works the same way as for a check with only a single spending category.

A Couple of Tips for Small Businesses Using Money

One interesting feature of working with multiple spending categories on a check is that although the categories listed in the Transaction With Multiple Categories dialog box need to total the check amount, the category amounts don’t all need to be positive values. For example, in the case of a $100 check, you might have two $50 categories. That makes sense, obviously. But another way to produce a $100 check amount is to spend $150 but subtract $50, such as for a refund or redeemed gift certificate.

And here's another thing to know: The first time you record a check to a particular payee, Money asks whether the check is a recurring transaction. If you answer “yes,” Money adds the check to its list of recurring transactions. The useful feature of this recurring transactions list is that Money will remind you in the future to record this check.

If you have trouble remembering to record checks—or even pay bills—this recurring transactions list can be a time saver and hassle reducer--especially for small businesses--corporations and limited liability companies--that need all the help they can get to keep their accounting easy..

How do I record ATM withdrawals?

An ATM transaction works just like a check. Accordingly, you record an ATM transaction in the exact same way that you record a check. You indicate the date of the withdrawal, the amount of the withdrawal, and if it’s appropriate, you record other information about the withdrawal.

NOTE One thing that seems different about an ATM transaction is the Pay To person or business corporation. In the case of an ATM withdrawal, you, the account holder, are

probably the Pay To person. To record the names you pay, you may want to put the name of the individual, corporation, limited liability company, and whoever else you pay on the memo line of the Split Transaction dialog box.

Article Source: http://articlenexus.com

Stephen L. Nelson, CPA edits the S Corporation web site. Nelson holds an MS from Golden Gate University and taught their graduate class: S Corporation vs. Limited Liability Company.

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