credit card refund on balance already paid
Last year we booked an airbnb for a trip this month. Due to Covid19, we had to cancel and now have a refund on our credit card.
I have been searching how to account for this and have been having a hard time figuring it out.
Part of my concern is this credit needs to be paid back to several people who were sharing the airbnb with us. I figure I use this credit in places I would normally be spending my income, and pay them instead of the credit card, but I cannot figure out how to get it to reflect properly in YNAB.
What steps do I take so my accounting is accurate? Thank you!
The main issue is you no longer have that cash. It's was used to pay down debt. The refund also paid down even more debt, so good news is you have 2x the debt reduction you were planning. The bad news is you will need to come up with your own cash to pay back your friends. Most people would probably use the funds now in the Vacation category.
The particulars from there depend on how you brought in your friend's money (e.g., separate reimbursement category? inflow to Vacation?). You'd need to shift money to the category used to inflow their money. Then categorize the check/venmo/whatever to them to that category as well.
Do note that it's not mandatory that you pick on the vacation category. I'd actually suggest you reallocate from the lowest priority category, which may or may not be Vacation.
Another option is to effectively "undo" the second debt payment by reallocating the same amount from the CC Payment category.
In fact, in the case this card had paid-in-full status before the refund, this is exactly what you should do. The CC Payment category will now have too much money reserved (more than the account balance), so use that to pay back your friends. Move it to whatever category used to inflow their funds originally and then categorize their payments to the same.
My situation is similar. I purchased an airline ticket prior to lockdown, and the airline has (3 months later!) indicated to me that they'd refund my ticket in full. I should get that this month.
I pay off my credit card in full every month, so I suspect I'll have a hefty credit attached to my card soon.
I only JUST started using YNAB last week so I have nothing to budget this to. I'm a bit confused as to what I do in this situation. Do I put the refund towards a budget? Or do I keep it as "to be budgeted"? I feel like putting it towards TBB is wrong but these threads all say it may be the right way? Am I missing something?