Best practice for categorizing same transaction from credit card and checking account

[joek]

What is the smartest way to categorize duplicate transactions which appear on the transaction sheet from a credit card and also from the checking account which pays the credit card? which one should be treated as the “real” one?

[richl]

In this situation there would actually be 3 transactions.

First is the purchase on your credit card. This should be to the actual category you meant for it to be. Let’s say groceries. Then the you have the credit card payment from your checking account to the credit card company . There are two transactions. These should both be account transfers so they offset each other.

[joek]

thanks for the info. i think you can tell i need an accounting class.

[warren]

There has been a lot of discussion on this workflow. Here are a couple of links to those threads.

Checking and Credit Card Categories (Transfer vs Expense)

Hello, I am certain this was asked before, I wanted to use best practices and like to confirm the best approach from the Tiller experts. I pay my credit card from my checking account and then it’s posted on the credit card account. In my categories for credit card payment as transfer, but not sure what category should be for checking. Make it more complicated, I pay my mobile phone via credit card and have that as expense. Input is welcomed and appreciated.

Categorizing interest charges on credit cards, any ideas?

I finally have developed my own personal list of categories and subsequent groups with those categories. So i have gone through all my transaction and have categorize them accordingly, including purchases made with credit cards have been. I’m stuck in deterring how to properly categorize/group “interest charges on purchases” and how to designate it (income/expense/transfer). Any ideas?

[dminches]

I view the payment of the credit card amount as a transfer. Once you have categorized the individual expenses I don’t see the need to “do” anything with the actual payment. You don’t want to double count the payment since the actual expense has already been recorded.