You might have noticed that when you make a purchase with your card, the transaction stays as "pending" on your bank's statement for a couple of days. Some people don't think about this too much but the difference between cleared and pending transactions is important to others. So what's the difference?
A pending transaction is a transaction that was executed but not yet processed. For example, when you buy an airline ticket, it's quite common for the charge to appear as pending for a long time. That money is not yours anymore - it has been reserved by the merchant. However, the transaction has not yet been processed so the money just hangs around your account for the time being. When the airline finally claims the money, you'll see that the transaction has cleared on your bank statement.
MoneyWiz allows you to reflect this in your Account register. By default, all transactions created with date of today or older are created as cleared and transactions created with future date are set as pending. But you can change their state at any time. Simply click on the category icon in the respective transaction to make the transaction either pending or cleared:
Red dot on the category icon means that the transaction is pending. No dot visible means that the transaction is cleared.
There are three more things you should know about pending transactions:
- They will affect your account balance. If you change your transaction filters to include pending transactions (it is set that way by default), they will be included in your account balance. If you change your filters so that only cleared transactions are visible, pending transactions will be hidden and excluded from balance calculation.
- They have their own heading. Pending transactions are taken away from cleared transactions and placed under separate "Pending" heading.
- They will not clear automatically. If you set a transaction with a future date as pending, nothing will happen when that date arrives. MoneyWiz will not clear the transaction unless you do it. If you expected something to happen, perhaps you should create a Scheduled transaction instead.
Please also remember that you can change whether manually created transactions arrive to accounts as pending or cleared: see Account basics guide.