Credit Card starting with Positive Balance - how to categorize?

We are currently renovating bathroom with lots of expenditures and credits happening on my 0% Discover - a card that's currently having import issues. Since all estimates pointed  to "soon" for a resolutions on this, I haven't been recording transactions. Today, I tried to fix that. My balance was paid in full last month, but I had returns this month go through.

Right now -- right or wrong -- I've force-reconciled my balance to show where my card stands today. Due to those returns, it's +$987.

I was hoping to just "make it work" go forward with manually inputting the transactions. But, how do I do this? 

If I add a transaction, the balance reflects correctly at the account (total Discover) level, but it throws off everything at the category level. 

How should I be categorizing transactions that occur on a positive-balance credit card?

Thank you!

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  • Just the same as always. They get categorized to the category where you spent the money. The only difference is that because you are spending down a positive balance, you don’t have to make a plan to pay back the spending, so the category balance will decrease with no corresponding increase to the card payment category. 

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      • Lauren E
      • Powder_Blue_Python
      • 1 yr ago
      • Reported - view

      WordTenor Hi! I don't follow. I understand that the credit card account balance is reflected properly, however, when I add a purchase to the card (I was playing around with mock purchases), it shows that I've overspent the category--it turns to red-- since I haven't budgeted for it. 

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    • Lauren E you'll have to be more specific about what you mean by "category". There are two involved -- the "spending" category (e.g., Clothing if you buy a shirt or whatever) and the CC Payment category.

      Neither of them should turn red when you add a purchase to the card. The spending category might turn yellow. The Payment category might turn red for a return on the card or excessive payment from checking.

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  • Additionally, the CC Payment category should be $0 while the account balance is positive. If it's not, make it so.

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  • Update: I just spent the last 2 hours making sure everything matched up and my accounts are all reconciled and pristine. So, it appears that the $987 from Discover shows within TBB (hope that's correct) since it's a positive. I'm presuming I just assign it to whatever category at this point. Because my accounts weren't clean I couldn't see this when I posted.

    Hopefully that's all I need to do. :) 

     

    Thanks  WordTenor  and  dakinemaui !

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  • Lauren E said:
    I'm presuming I just assign it to whatever category at this point.

    Yes, put it wherever you like. Do note that taking the account balance positive typically results in a negative CC Payment category. Make sure any red categories are covered as your #1 priority.

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