Entering Transaction for money I owe someone

How would I enter a transaction for services rendered on a specific date (let's say January 26) that hasn't been paid yet?  Would I simply enter the transaction to the proper category, and manually approve the amount once it's paid?  I say manual because the date of service wouldn't match the actual date that the money is paid. 

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  • I would put it as a scheduled transaction of -whatever with date 20th of February or something. If you enter it with today's date then your account balance will be off until it hits.

    When you know the exact payment date then just use the 'enter now' button or set the exact date. If you still don't know by the date you set, then just postpone the transaction another week or two by changing the transaction date.

    This is pretty much a future expense of known(?) amount, with known payee. Could be worse, only one unknown. 😉

    If you don't know the exact amount, then just enter a ballpark figure. If the category drops below the amount you set then the category will be colored red or yellow to warn you of this issue.

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  • I enter transactions dated for when money leaves my control. The advantage of using the earlier date is that money is removed from the relevant category, so I won't be mislead into thinking more money is available than actually is.

    The fact the "working" account balance differs from the bank's balance is precisely why the "cleared" status indicator is present.

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  • In this case, the uncleared manual transaction from 1/27, was paid in a check in February that included a February transaction + the January owed money.

     

    Do I manually delete the 1/27 transaction to reconcile with the actual outflow in February? 

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      • dakinemaui
      • dakinemaui
      • 7 mths ago
      • Reported - view

      jestarr If you actually gave them the check in Jan, I'd date it in Jan. The fact the bank cleared the transaction in Feb doesn't really matter. In general, the idea is that the transaction impact the budget once it's too late to realistically change your mind.

      On the other hand, if you meant to pay in Jan, but didn't get around to it in Feb, at which time you paid the new total... then I would record in Feb (edit the Jan transaction, updating the date and amount). Again, when does the money leave your control? That's the date I would recommend.

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  • For others that may see this thread, via PM I've learned the "Jan" transaction in the above discussion was not an actual outflow, but merely a commitment/promise to pay later. A Line of Credit account is perfect for this. When services are rendered, record a transaction in the LOC for the cost of the service, categorized appropriately. Like any credit-based account, funds move from that "service" category to the LOC Payment category, where they will sit until you want to settle the account.

    A spa membership or golf membership is a good example where this might apply. During the month, you "run a tab" for treatments or rounds/meals/etc. and then settle up with a bulk payment at some point. By recording things as they happen, the spending category is updated (providing up-to-date spending guidance for future decisions) as well as keeping a track of how much is owed toward the payment.

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  • 7 mths agoLast active
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