Ohio State University Extension Bulletin

Computerized Farm Record Keeping

Bulletin 890-01


Categories & Classes

Categories are used to divide or classify transactions within Quicken. Examples are income and expense groups on Schedule F, the Ohio Commercial Farm Account Book categories, or those recommended from an accountant or tax preparer. Specific examples of categories might be Grain Sold or Feed Purchased. Each category is designated as tax or non-tax related for report and summary purposes.

Setting Up Categories

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 the complete list of tax forms and lines from the pull-down menu. These last two choices 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.

Editing Categories

To edit a category you first need to have the CATEGORY & TRANSFER LIST window opened. Point to the category you wish to edit and Click to highlight the category. Click the Edit button on the CATEGORY & TRANSFER LIST window toolbar. This will give you the EDIT CATEGORY window where you can change the various different components related to a category: Name, Description, Group, Type and Tax Sections. Click OK when finished.

Deleting Categories

To delete a category, highlight the category to be deleted in the CATEGORY & TRANSFER LIST window. Click the Delete button from the CATEGORY & TRANSFER LIST window toolbar. You will be prompted with a Delete Category window stating "YOU ARE ABOUT TO PERMANENTLY DELETE A CATEGORY." Click Delete Category. Click OK. You also have the option to replace the category by Clicking Replace Category. This selection and selection of a category from the adjoining pull-down menu enables you to merge the deleted category with the category from the pull-down menu.

Subcategories

Subcategories are a further breakdown of an income or expense category designated by a colon ':' between the category and subcategory in the category field when entering a transaction. For example, the Repairs category may have two subcategories, Building and Machinery to separate transactions and their associated dollar amounts for summarizing (e.g. Repairs:Building).

Subcategories are set up in the same way as categories, except when you designate "Type" in the SET UP CATEGORY window, Click Subcategory of, Click the adjacent down arrow to view the pull down menu. Click the category that the subcategory is to be assigned to.

Subcategories are edited in the same way categories are edited.

Merging Categories

To merge categories you must first make one category a sub-category of another. To do this highlight the category that is to be merged. Click the Edit button on the CATEGORY & TRANSFER LIST window toolbar as you would to edit a category. In the EDIT CATEGORY window, under Type, Click Subcategory of. Click the drop down arrow to view the pull down menu to select the category you wish to merge into. When this category is selected, Click OK. The first category selected is now a subcategory of the second.

Next Click the subcategory (former category) that is to be merged. Click the Delete button from the CATEGORY & TRANSFER LIST window toolbar. You will be prompted with a window asking DELETING SUBCATEGORY. MERGE SUBCATEGORY WITH PARENT? Click Yes. Your categories are now merged.

Classes

Classes are a second way of classifying your transaction data so you can summarize by enterprise, landlord, property or farm, e.g., corn, soybeans, wheat, hogs, beef.

Classes may be set up in the same three ways categories are set up: 1) ahead of time, 2) as you enter transactions, 3) imported into a file using a QIF file.

Setting Up Classes

From the menu bar Click Finance and Click Class List to open the CLASS LIST window. The CLASS LIST window toolbar buttons are as follows:

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

How Do I - help in the Class List window

X - close the Class List window.

You may also Click Class from the Main Toolbar (if added) to open the CLASS LIST window.

To set up classes ahead of time Click the New button from the CLASS LIST window toolbar. The SET UP CLASS window will then appear allowing you to enter Name and Description for the class. Click OK when done.

When entering category and class information in the category/class field of a transaction the category name is followed by a backslash '/' to separate it from the class which is typed in following the '/' (e.g. Fertilizer/Corn) .

To set up classes as you enter transactions, enter your transaction information as you normally would. When you get to the Category field enter your category followed by '/.' Next, enter the new class name. Click Enter. You will then be prompted with the SET UP CLASS window. Proceed from here as you did when setting up classes ahead of time.

Editing And Deleting Classes

Editing and deleting classes require the same steps as for categories, except the edit and delete commands are accessed in the CLASS LIST window toolbar.

Subclasses

A further breakdown of a class, is designated by a colon ':' between class and subclass in the category/class field when entering a transaction (e.g., Fertilizer/Corn:field1). Subclasses are created, edited and deleted in the same way as classes.

Printing the Category&Transfer List and Printing the Class List

You may need to have a printed copy of your Category & Transfer List and Class List for quick reference when you begin entering data in Quicken. These printed lists may serve as useful tools as you learn how to properly categorize and assign classes to transactions.

To print a copy of a Category & Transfer List, Click Finance from the menu bar and Click Category & Transfer List to open the CATEGORY & TRANSFER LIST window. Click File from the menu bar and Click Print List. Click OK from the PRINT window.

To print a copy of the Class List, Click Finance from the menu bar and Click Class List to open the CLASS LIST window. Click File from the menu bar and Click Print List. Click OK from the PRINT window.

Using A Pre-Defined Set Of Categories And Classes

One of the advantages of Quicken is the ability to create your own categories and classes for your farm record system. However, some record keepers prefer to use a pre-defined set of categories and classes rather than creating their own. The following Category & Transfer Lists were created by OSU Farm Management Specialists. The first list, contained in the FARM&HOME.QIF file, is fairly detailed and contains farm, home and personal categories, classes and suggestions for accounts. The second Category & Transfer List is contained in the FARM.QIF file and contains the same farm categories and classes, but fewer family living and personal categories than FARM&HOME.QIF.

Both lists are available from your local OSU Extension office or can be downloaded from the OSU Extension website. Instructions on how to download a file and how to import one of these QIF files into your Quicken program follow in this chapter under Downloading a ZIP File, Unzipping a ZIP File and Importing a QIF File.

FARM&HOME CATEGORY/TRANSFER LIST - the following categories are in the FARM&HOME.QIF file. Home/personal categories start with an "H", other categories are farm business categories.

CATEGORY TYPE TAX DESCRIPTION
CCC Loan Inc IF NOT USING LIABILITY ACCOUNT
CCC Loan as Inc Inc Tax CCC Loan Inc or Redeemed
Custom Work Inc Tax
Gas Tax Refunds Inc Tax
Gifts Recieved Inc
Govt Payments Inc Tax Government Payments
Grain Sold Inc Tax Crop Sales
HDiv&Int Inc Tax Nonfarm Interest & Dividends
HOtherInc Inc Tax Other Nonfarm Income
HWages Inc Tax Nonfarm Wage Income
Inc, Int Inc Tax Interest Income
Inc, Invest Inc Tax Investment Income
Inc, Rents Inc Tax
Loan Receipts Inc IF NOT USING LIABILITY ACCOUNT
LS Sold Inc Tax Livestock Sales
PBreedLT Sub Tax Form 4797, Long Term Capital Gains
PBreedST Sub Tax Form 4797, Short Term Capital Gaines
PFeeder Sub Tax Purchased Feeder Livestock Sold
RBreedLT Sub Tax Form 4797, Long Term Capital Gains
RBreedST Sub Tax Form 4797, Short Term Capital Gains
RMarket Sub Tax Raised Market Livestock Sold
M&E&B Sold Inc Tax Mach & Equip & Other Cap Assets Sold
LT Sub Tax Form 4797, Long Term Capital Gains
ST Sub Tax Form 4797, Short Term Capital Gains
Milk Sold Inc Tax
Other Farm Inc Inc Tax
Patr Div-C Inc Tax Cash Portion-Qualified Patronage Dividend
Patr Div-NC Inc Tax NonCash Portion-Qualified Patronage Div
Poultry & Eggs Inc Tax
Refund, Tax Inc Tax State & Local Tax Refunds
Wool & LS Prod Inc Tax Other Livestock Products
Auto & Truck Exp Tax
Bank Charge Exp Tax Bank Charges For Farm Account
Capitol Purch Exp IF NOT USING ASSET ACCOUNT
CCCGrCost Exp Tax Expense of Grain with CCC Loan as Income
Chemicals Exp Tax Crop Herbicides, Insecticides, Supplies
Drying&Storage Exp Tax
Dues Exp Tax
Feed Purchased Exp Tax
Feeder LS Exp Tax Feeder Livestock Purchased For Resale
Cost Sub Tax Purchase Cost Deducted At Time Of Sale
Purch Sub IF NOT USING ASSET ACCOUNT
Fees Exp Tax
Fert & Lime Exp Tax Fertilizer & Lime
Fuel & Lube Exp Tax
HAuto Exp Personal Auto Expense
HCharity Exp Tax Charitable Contributions
HClothing Exp
HFamily Draw Exp IF NOT USING A CASH ACCOUNT
HFood Exp Groceries & Restaurants
HGifts Exp
HHouseImpr Exp Furniture, Appliances, Repairs
HInsurance Exp Auto, Life, Personal
HInterest Exp Personal Interest
HIntMort Exp Tax Deductible Home Mortgage Interest
HMedical Exp Tax Health Insurance, Doctors, Prescriptions
HMisc Exp Tax Miscellaneous Home & Perosonal Expenses
Insurance Exp Tax Farm Insurance
Interest Exp Exp Tax Interrest Expense
Interest, Mort Exp Tax Mortgage Interest Expense
Lease Exp Tax Lease Payments
Loan Principal Exp IF NOT USING LIABILITY ACCOUNT
Mach Hire, Truck Exp Tax Machine Hire & Trucking
Marketing Exp Tax Marketing Charge
Brdg&Cap Sub Tax For Breeding LS & Cap Asset Sales
Crops Sub Tax For Crop Sales
Mkt LS Sub Tax For Market Livestock Sales
Other Sub Tax For Other Farm Related Sales
Misc Exp Tax Miscellaneous Farm Expense
Payroll Exp Tax Payroll Expenses
Comp FICA Sub Tax Employer Paid FICA
Comp MCARE Sub Tax Employer Paid Medicare
Gross Sub Tax Gross Wages Paid
Pre-Tax Exp Tax Pre-tax Deductions
Dent Ins Sub Tax Pre-tax Dental Insurance
Life Ins Sub Tax Pre-tax Life Insurance
Med Ins Sub Tax Pre-tax Medical Insurance
Pre-Tax, Spouse Exp Tax Pre-tax Deductions, Spouse
Dent Ins Sub Tax Pre-tax Dental Insurance
Life Ins Sub Tax Pre-tax Life Insurance
Med Ins Sub Tax Pre-tax Medical Insurance
Prof Services Exp Tax Accounting, Legal, Consultants
Rent Exp Tax Cash Rent Paid
Repairs Exp Tax Repairs & Maintenance
Building Sub Tax Building & Fence Repairs
Mchy Sub Tax Machinery Repairs
Resale Items Exp Tax Other Items Purchased For Resale
Cost Sub Tax Cost of Items Deducted At Time Of Sale
Purch Sub IF NOT USING ASSET ACCOUNT
Seed & Plants Exp Tax Seeds & Plants Purchased
Subscriptions Exp Tax
Supplies Exp Tax General Farm Supplies
Supplies LS Exp Tax Livestock Supplies
Tax Exp Tax Taxes Paid
Federal Sub
FICA Sub Soc Sec Tax - Farm & Non-Farm Earnings
Hprop Sub Tax Home Property Tax
Other Sub Tax
Property Sub Tax Farm Property Tax
State Sub Tax State Tax
Utilities Exp Tax
Electric Sub Tax Farm Share
Heating Sub Tax Farm Share
Hutilities Sub Home & Personal utilities
Telephone Sub Tax Farm Share
Vet & Med Exp Tax
Workers Comp Exp Tax Workers Compensation

Classes are another way of classifying (in addition to categories) farm record data by enterprise, landlord, farm, etc. The following classes would be possibilities for a crop/livestock farm and are included in the FARM&HOME.QIF file and the FARM.QIF file.

Beef
Corn
Dairy

Gen Farm

Hogs

Home

Soybeans

Wheat

The following accounts are types of suggested accounts to be set up and used in lieu of several of the categories identified in the above list. These are not part of the FARM&HOME.QIF file or the FARM.QIF file, but would need to be created by each record keeper. See the ACCOUNTS chapter for information on creating accounts.

[CASH] Cash Cash account for recording taxable & non-taxable cash transactions
[LOAN] Liability Liability account(s) for recording loan disbursements & loan principal payments
[RESALE INV] Asset Asset account(s) for recording feeder livestock purchased for resale
[CAP PURCH] Asset Asset account(s) for recording capital purchases

The FARM.QIF category & transfer list contains the same farm business categories, classes and accounts as listed above, but significantly fewer home/personal categories.

Downloading a ZIP File

The downloading procedure varies depending on the Internet browser you are using. Instructions for both Netscape and Internet Explorer follow.

For Netscape, go to the OSU Extension website [http://www.ag.ohio-state.edu/~agnatres/software], Click Farm Management, Click on farm&home.zip (or farm.zip) and Click Save File... to open the Save As... window. Click on the down arrow to the right of Save in:, Click [C:] and point to the folder to the right that has the drop down description CREATE NEW FOLDER and Click. NEW FOLDER will appear in the list of folders and will be highlighted. Type UNZIPPED to replace NEW FOLDER and Click to the side away from the folder. Double Click on the UNZIPPED folder to place in Save in: and Click Save to complete the downloading process. Close the Netscape window.

For Internet Explorer, go to the OSU Extension website [http://www.ag.ohio-state.edu/~agnatres/software], Click Farm Management, Click on farm&home.zip (or farm.zip) to open the File Download window. Within this window, Save this file to disk should be Clicked on. Click OK and the Save As window opens. Click on the down arrow to the right of Save in:, Click [C:] and point to the folder to the right that has the drop down description CREATE NEW FOLDER and Click. NEW FOLDER will appear in the list of folders and will be highlighted. Type UNZIPPED to replace NEW FOLDER and Click to the side away from the folder. Double Click on the UNZIPPED folder to place in Save in: and Click Save. Click Close when the download is complete. Close the Internet Explorer window.

Unzipping a ZIP File

The file(s) you have downloaded are not in the QIF format needed for importing into Quicken. The next step is to unzip the file and transform it into a QIF format. Click the Start button in the lower left corner of your computer's screen, Click Programs and Click Windows Explorer. At the top of the left column, Click on the drop down arrow (or use the scroll bar if there is no drop down arrow) and Click on [C:] if it is not already highlighted. With [C:] on top, all the folders and files on the C drive are shown below in the left column. Click on the UNZIPPED folder that contains your zip file(s).

On the right of the Exploring window Double Click on farm&home (or farm) to open the WinZip window. (See the Note below if you have trouble at this point.) Click I Agree, Click Next> as many times as needed by the program and Click Unzip Now. The program creates a new folder with the same name as your zip file, places the QIF file in it and opens it. Click X to close the farm&home folder. Click Close to exit the WinZip program. You should now see on the right side of the Exploring window the name of the zip file(s) you downloaded and a folder(s) with the same name that contain the QIF files. Click X to close the Windows Explorer program.

If you followed the above instructions, downloaded farm&home.zip into the UNZIPPED folder on the C drive and unzipped the file, the location of the farm&home.qif file is C:\unzipped\farm&home. This location is important when you import this QIF file into Quicken.

**Note** The above instructions assume that the WinZip program is already loaded on your computer. When you Double Click on farm&home.zip, if your computer asks you which program you want to use to open farm&home.zip, you do not have the WinZip program on your computer. You can download it free at [www.winzip.com]. Once it is downloaded, it then has to be installed before it can be used.

Importing a QIF File

Before importing, a file must have been created and contain at least one account. A cash account is the easiest to create for this purpose. **Note** Your file must not contain any of Quicken's preset category lists. If it does, go to If You Make A Mistake in the Getting Started chapter and follow the instructions.

  1. If your FARM&HOME.QIF file is on a disk, insert the disk into the A drive. If you downloaded the file, go to the next step.
  2. Click File, Click Import and Click QIF File.
  3. Click Browse.
  4. Click the down arrow adjacent to Look in: to view the pull down menu. If on disk, Click (A:), Click FARM&HOME.QIF and Click OK. If you downloaded the file, Click (C:), Double Click the UNZIPPED folder, Double Click the FARM&HOME folder, Click FARM&HOME.QIF and Click OK
  5. Under Quicken Account to Import into: Click down arrow to view the pull down menu. Click to highlight the account you want to import the .QIF file into.
  6. Click Category List. Remove all other check marks and click OK.
  7. After the importing has finished, from the menu bar Click Finance, Click Category&Transfer List to view the list of categories imported. Click Finance, Click Class List to check the list of classes imported.
  8. To print a list of categories and classes, refer to the section Printing the Category&Transfer List and Printing the Class List earlier in this chapter.

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