There are three different methods for adding categories to your account. First, they can be set up ahead of time. Second, they can be set up as transactions are entered into the register. And third, they can be imported into a file using a QIF file. There are detailed instructions on how to import categories at the end of this chapter in the section Importing A Pre-Defined Set of Categories And Classes.
From the menu bar Click Finance and Click Category&Transfer List. This will open the CATEGORY & TRANSFER LIST window.
The buttons on this window’s toolbar include the following:
New - create a new category or sub-category
Edit - change the selected category
Delete - delete the selected category
Report - create a report on the selected category
Options - change the properties of the category list
How Do I - help in the Category&Transfer List window
X - close the Category & Transfer List window.
You may also Click Category from the Main Toolbar (if added) to open the CATEGORY & TRANSFER LIST window.
To set up categories ahead of time, Click New button on the Category and Transfer List window toolbar within the window. This gives you the SET UP CATEGORY window where you will begin entering information for your new category.
First, you must enter the name for your new category (e.g., Grain Sold). Second, you are asked to give a description. While this is not mandatory, it is useful to provide detailed information about the category for future reference. This information can be accessed in the CATEGORY & TRANSFER LIST window. Third, you will be asked to enter a Group for the category. Make sure this field is blank. (Categories may be grouped for budgeting purposes. See Quicken Help for more information on Category Groups.) Fourth, you are asked to select the type of category you are setting up: income, expense or subcategory (more on subcategories later). Fifth, make sure the Spending is not discretionary box is left unchecked. Sixth, you need to decide if the category is tax related. If it is, you need to Click Tax-Related. If it isn’t a tax related category, leave this box blank.
Lastly, you may want to designate the tax form and line on the tax form this category corresponds to. You can choose from two lists of tax forms and lines from the pull-down menu. The Standard Line Item List is an abbreviated list of tax forms. For farm record keeping, the Extended Line Item List should be selected as it includes Schedule F and other farm related forms. Tax related portions of setting up a category are optional and are dependent on the level of detail you wish to obtain on reports. It is recommended that you at least designate whether the category is tax related or not. Click OK when finished.
Categories can also be set up as you are making transaction entries into the register. Simply enter information into entry fields of a transaction as you normally would. When you arrive at the category field, enter the name of the new category. Quicken will prompt you with a NEW CATEGORY window asking DO YOU WANT TO CREATE A NEW CATEGORY WITH THE NAME "NEW CATEGORY NAME"? Click Yes. This will take you to the SET UP CATEGORY window where you will follow the same procedures as described in the previous paragraphs.