Credit card payment - previous month

Heya!  I am new to the online version of YNAB and I love the way it handles credit card payments.  I made my payment for December credit card spending yesterday (so, in January) and transferred it to my MC.  So, my credit card spending for December is completely paid off but when I go back to my December budget, it still shows payment owing.  I am confused as to why it still shows the amount owing in the far right column.  Can anyone shed light on this for me?  

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  • The right hand column in your December budget shows how much money you had set aside for your credit card payment on December 31 not how much you owe - that is contained in the account balance. Paying the credit card in January has no impact on how much was available on December 31.

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  • Thanks for your reply!  I'm still confused.  Why would it still show what I've set aside in the "payment" column when I've paid it.  Shouldn't it go down to zero after I've made the payment?  I'm wondering if it's because I made the payment in January.

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      • eloquentz
      • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
      • eloquentz
      • 2 yrs ago
      • Reported - view

      Brucebabe Did you use the "Transfer: CC name" in the payee field?  Or, if the CC is just a tracking account, did you use "Payment - CC name (whatever your category for this expense is)" in the Category column?

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      • Brucebabe
      • Hot_Pink_Case_8e2146321
      • 2 yrs ago
      • Reported - view

      eloquentz I did - it says transfer from chequeing to PC mastercard and under the PC Mastercard account it says transfer from: chequing.  When I change the payment date to December 31st it changes the payment amount in the right column to 0 but the payment was made on Jan. 9th.  I assume a lot of CC payments are made the following month from when the transactions took place as payment due dates are usually a month later.   Not sure why it won't bring it to 0 even if it's in the following month.

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      • Ben
      • Toolkit for YNAB Designer & Developer
      • furiousfalcon
      • 2 yrs ago
      • 3
      • Best Answer
      • Reported - view

      Brucebabe The credit card available number in December shows how much was left in that category at the end of December. That amount rolls over into the next month. Don't worry about that number -- worry about the current month.

      When you make a payment, YNAB doesn't care about due dates or your statement amount or anything like that. When you make a payment, YNAB doesn't care "when" the items you are paying for were bought, what statement/month they belong to, etc. Any amount from the previous month simply gets rolled over to the next month.

      The amount set aside in the Payment column represents money set aside based on anything additional you've budgeted (in the Budgeted column) plus any past budgeted spending (from the current month or otherwise). It will only drop to zero if you make a payment in the full amount that matches what you have set aside in YNAB. In general, that number is likely not going to be zero (or will be zero for a very short amount of time) because you're likely spending money on that card pretty consistently, so that number will continue to fluctuate.

      Really, the important thing (assuming you want to carry no debt) is that the amount available to pay off the card always matches with the account balance. For example, if you have $500 in debt on the card, you have +$500 available to pay it off. This indicates that at any time, you could make a payment in full.

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      • Brucebabe
      • Hot_Pink_Case_8e2146321
      • 2 yrs ago
      • Reported - view

      Ben Thanks Ben - I kind of thought that's what it was but wanted to make sure I was doing it properly.  It's the optics of it that bother me - I want Dec to be completely clear haha!  What matters most though, is that I'm managing credit card payments properly.

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      • eloquentz
      • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
      • eloquentz
      • 2 yrs ago
      • 1
      • Reported - view

      Brucebabe By clear I assume you mean all categories at zero and moving the rest of the money to "To be budgeted" or "Savings" or some such?  You could do this, but just remember to flip over to the next month and immediately re-budget the credit card payment that you zeroed out.

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      • Ben
      • Toolkit for YNAB Designer & Developer
      • furiousfalcon
      • 2 yrs ago
      • 1
      • Reported - view

      eloquentz Really, the only way Dec is going to be zero is if you make a payment right at the end of the month in the full amount you have set aside, and you don't do any spending on the card between the payment and the end of the month.

      Personally, that sounds like more hassle than it's worth. The important thing is that you want your amount set aside for payment to match up with your balance.  The rest really doesn't matter.

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  • Thanks everyone!  I understand now.  💯

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