Funded new savings account with a credit card, now have an overpayment

Hi Folks, I'm wondering if anyone has been in this situation before. I searched for this for a while but cannot really find any relevant answers.

Recently, I opened a new savings account and funded it for $1000 with a credit card purchase (some banks allow you to do this, great way to generate points and meet minimum spending requirements for cc bonuses. If you do this, make sure to research it to avoid your purchase coding as a cash withdrawal - not all bank/cc pairs work).

I recorded this in YNAB as a transfer from the credit card to the savings account. I then paid off the credit card. 

Now I have the funding amount listed as a $1000 overpayment on the credit card account and YNAB wants me to move money from another budget to cover it. There was no income or spending involved in this transaction, just moving money between accounts, albeit in a somewhat unusual way. Therefore, I believe that this kind of a transaction should not require budgeting for; doing so basically removes $1000 from my other budgets without any reason for it as the initial transfer did not generate any new amount to be budgeted.

Short of deleting the transactions and creating manual balance adjustments during reconciliation, I am not sure what I can do.

Am I wrong regarding my budgeting assumptions? And how should I proceed in this case?

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  • You need to account for (budget) how you paid the credit card off.

    • Budget OCD could you please expand your response further? Since the transfer transaction did not generate any new amount to be budgeted, where would the funds for this budget be coming from?

  • The transfer did generate new money to be budgeted. You raised your on hand cash by $1,000 by creating $1,000 of new debt. Since the debt accrual (in the account) and the debt payback plan (in the budget) are separate, you have to make a plan to pay back the $1,000. You do this most easily by budgeting the newly-generated $1,000 to the card payment category do that it returns to the same available amount it was at before. 

     The easiest way to see this in action is to do it on a budget with nothing else happening.  Start a new budget, and have the only thing that happens to be a transfer from credit to savings.  You'll see that what happens is $1000 gets generated, but now the difference between the credit card category and the card balance is $1000-- debt you've incurred but not made a plan to pay off.  

    Like 3
    • WordTenor what you outlined makes complete sense to me and it is what I think should have happened. However, as I have mentioned above, the transfer did not generate any new income to be budgeted. Since I found multiple reports that is should happen, I just did some experimenting with a clean budget, and I think this may be a bug: 

      • When I used a non-Chase cc account and made the same kind of transfer, the money did appear in To Be Budgeted, I applied it to the pay off budget, and was good to go.
      • However, when I did this with a Chase card, the money did not appear in To Be Budgeted.

      Obviously, this should not be the case. Perhaps it has to do with the fact that the Chase online account username I used to setup the direct import is associated with a business credit card account (I have a set of Chase Ink cards for my IC business in addition to the consumer ones, and Chase only allows to add consumer cards to business usernames, not the other way around). I'll go ahead and report this to support directly, I guess. Thank you for the effort.

      • Jannelle
      • jannelle_ynabsupport
      • 3 yrs ago
      • Reported - view

      Powder Blue Cobra It looks like Elena (our resident bug expert!) picked up your email, so you're in good hands! We'll figure this out. 😊

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