accounting Which date to record for a transaction? Personal Finance & Money Stack Exchange

accounting Which date to record for a transaction? Personal Finance & Money Stack Exchange

However, I’d recommend seeking advice from your accountant to verify which date is appropriate to use. Because each time you run the Inventory value report you have to select the dates for the inventory data to present. Especially the ending date is important to be able to present the data related to an ‘as of’ date. Your bank is maintaining different states for transactions, and changing the state depending on real-world events and the passage of time. The bookkeeping software that I use doesn’t seem to allow for this „transfer time” between accounts.

  • The prime minister also confirmed that the justice secretary, Alex Chalk, could strip the Post Office of its private prosecution powers.
  • Campaigners have also highlighted other shocking aspects of the story, including documents that Post Office prosecutors classified branch owner-operators by ethnicity, using a racist term for black workers.
  • However, the federal Office of the Comptroller of the Currency (OCC) notes, „the bank may set reasonable requirements for receiving payments. For instance, the bank may set a cut-off time.”
  • Hundreds of sub-post office operators ended up with criminal records and punishments ranging from having to do community service and wear electronic tags to being jailed.

Specifically, since your payment history is the most important factor that makes up your FICO score at 35%, paying your bill after this date could result in damage to your credit. The loss-making Post Office has asked the government for £252m of funding to keep it afloat, including money to cover the cost of updating the controversial IT system, which it still uses with support from developers Fujitsu. Campaigners have also highlighted other shocking aspects of the story, including documents that Post Office prosecutors classified branch owner-operators by ethnicity, using a racist term for black workers. That was despite knowing that from at least 2010 onwards that there were faults in the centralised accounting software. Likewise, when a wire transfer is made from an account in one bank to an account in another bank, the value date is the date on which the incoming wire becomes available to the receiving bank and its customer. Feel free to get back here if you have any other concerns about importing transactions to your QBSE account.

Statement Closing Date

Having a credit card means being accountable for repayment of every cent you charge to your account, but your responsibility extends far beyond debt repayment. As a cardholder and responsible steward of credit, you’ll also need to keep track of an array of important credit card debts, some more important than others. I recently tried to get started with YNAB using bank import, and I realized that charges were showing up in YNAB based on when they clear my account (cleared/posted date), vs. when I make the purchase (transaction date). I emailed support and they said this is just how it works, unless you enter the transactions manually, in which case they should match with the transaction date. Credit card posting plays a vital role in managing your finances and understanding your available credit.

  • Isn’t this a really challenging way to budget, given that I have no control over when charges clear, only when I make them?
  • Many banks and issuers set a cut-off time for the payment due date, such as 5 p.m.
  • Once the transaction is sent to the credit card issuer for payment to the merchant, the transaction posts to your account.
  • It essentially updates your account with the relevant information, including the amount, merchant, and date of the transaction or payment.

Credit card posting refers to the act of updating your credit card account to reflect new transactions or payments. When you make a purchase using your credit card or make a payment towards your outstanding balance, the posting process initiates. It essentially updates your account with the relevant information, including the amount, merchant, and date of the transaction or payment.

Keir Starmer denies he knew CPS was prosecuting post office operators

This both makes it clear that there is money going between places, and ensures that the daily balance on each „physical” account is accurate. In general, the date that a transaction posts to their account, as opposed to the date the transaction actually took place, will be of little consequence to the average cardholder. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. In May 2010, Davey refused to meet Bates, saying he did not believe seeing the campaigning post office operator “would serve any purpose”.

Understanding a Transaction Date

It has also come under fire for further blunders, such as tax being charged on compensation and offering bosses about £1.6m in bonuses, with handling of the Horizon inquiry one of four “metrics” on which payments were awarded. The value date is also used when evaluating coupon bonds that make semi-annual interest payments. For example, in the case of savings bonds, the interest is compounded semi-annually, so the value date is every six months. This removes any uncertainty for investors since their calculations of interest payments will be the same as the governments. For my personal financial accounts, I use whatever I think makes sense at the moment which, for me, is almost always to use the earlier date. Isn’t this a really challenging way to budget, given that I have no control over when charges clear, only when I make them?

No precedent: why Commons approach to Post Office scandal has lawyers nervous

The seller is paid upon settlement, because all of the details about the transaction have been finalized, and because the buyer is certain that what has been promised has actually been delivered. Between the transaction date and the post date, the card issuer will put a hold on the cardholder’s credit line for that sum of money. The credit line will still be reduced to reflect that charge until the cardholder pays their balance off.

Quickbooks uploads the Posting Date and not the Transaction date when the transactions come through the bank feed and the credit card account is connected to QBO. A discussion income tax calculator subreddit for popular budgeting software You Need A Budget. Feel free to post any news, questions, budget strategies, tips & tricks and advice related to YNAB.

Payment Due Date

For example, if your credit card issuer posts payments made before 5 p.m. In the time zone indicated on the bill on the same business day, a payment made at 6 p.m. The timing of credit card posting is significant because it affects various aspects of your financial life.

Due to differences in time zones and bank processing delays, the value date for spot trades in foreign currencies is usually set two days after a transaction is agreed on. The value date is the day that the currencies are traded, not the date on which the traders agree to the exchange rate. According to the large credit card issuer Capitol One, „your online or mobile banking app may not include pending transactions in the current balance, so it might not match your available balance.” Posting is part of the clearing and settlement process in credit card transactions. Settlement refers to the stage when the merchant gets their payment from the card issuer, while clearing involves all of the steps leading up to that.

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