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?
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.
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 !
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.