How to split shared expenses to reflect my truely expenses with new YNAB ?

Hi,

 

     I am using the  following (in link) method to enter shared expenses between friends on road trips  when using YNAB 4 .   I use this method in order to have my true expenses and not expenses  of my friends that will pay me back later.

https://coreymckrill.com/2014/01/30/how-to-incorporate-shared-expenses-into-your-budget-tracking/

I  pay some of the common expenses with a credit card. 

But does this method still work in the new YNAB ?

 

Thanks

9replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • anyone ?

    🙂

    Like
  • I read the post twice and I think I get what he's trying to accomplish. But there's a problem: transfers FROM a credit card in nYNAB don't automatically put money into the credit card payment category, because there's no place to move it from. In other words, if you enter a transaction on your credit card account that's a $50 transfer to Checking, that won't move any money to your credit card repayment category, because there's no category to move it from. You'd have to then budget manually to the credit card. (I haven't used YNAB 4 and don't know how this works, but I assume it would have to be the same...?)

    This seems like a real pain compared to just monitoring how much you owe or are owed on Splitwise, and then making the reimbursement a split transaction.

    Like 2
  • Hi Slate Blue Vacuum !

    Hmm, could you create a "Reimbursements" category (or even, "Shared Expenses with Friends" category) and just split your transactions to reflect what you pay (out of regular categories) and what your friends owe you (out of that "Reimbursements" or"Shared Expenses with Friends" category)? For Reporting, you can just exclude this category. 

     

    As for reimbursements though, that's an important topic, so a section of our Help Docs is dedicated to it. Here's a quick summary, and you can follow the link to learn more.

    There are two ways you can handle reimbursements in YNAB:

     1. Budget for the initial expense, then treat the reimbursement as income.

     2. Temporarily overspend, then use the reimbursement to cover it.

     

    Budgeting for all your spending, even if it will eventually be reimbursed, is the best way to handle reimbursements. If that reimbursement is late (or never comes), you're covered.

     

    Temporary overspending is only recommended when the reimbursable expense occurred on a credit card, since money hasn't been immediately removed from your bank. Our Help Docs explain how to handle the reimbursement based on whether you receive it in the same month or a future month.

     

    Does that sound like it will suit your situation? I hope so! 

    Like 1
    • Jannelle  So the method explained in the link  in my post in definitively not recommended in the new YNAB ??

      Like 1
    • Hi Slate Blue Vacuum !

      I hope you don't mind me jumping in here! :)

      I wouldn't suggest the approach outlined in that article because of the issue Mamster mentioned. Transfers out of a credit card/line of credit account is considered a cash advance in YNAB and there isn't a way to automatically have that amount accounted for - you'd have to manually budget the funds towards your credit card category to make up the difference.

      We suggest having a Reimbursements category to handle lending like what's described in the article. It's somewhat similar, it's just using a category to monitor the ins and outs instead of an account.

      Like 1
    • Faness  Jannelle 

      I just proceed like you describe by creating a  new group category Shared Expense with a sub category Share Expense.

      Now I have a problem , how do I enter expenses that my friend  paid for me in order to reflect that expense on my report ?   

       

      I have no problem when I pay the expenses for them,  ,  I split the transactions  between my categories and I use the Shares Expenses category for their part.

      Thanks

      Like
    • Slate Blue Vacuum Are you asking how you record the transaction when your friend pays you back? If so, enter a transaction for a positive amount (how much your friend gave you) and categorize it back to the Shared Expenses category. If you entered a transaction for -$20 when you paid the expense for your friend, enter a transaction for +$20 once they pay you back and it will zero out the amount in that category. :)

      Like
    • Faness  Jannelle

      Hi,

        I am asking  how I record a transaction that a friend is paying for me by using you method with a "shared expense " category ???

      I want to record that transaction in my category not in the shared expense because I want to be able to track that expense

       

      Faness said:
      enter a transaction for +$20 once they pay you back and it will zero out the amount in that category

       Since my friend is paying me back in cash, this method is not recommended according to the article pointed by Jannelle

      Like
    • Slate Blue Vacuum Sorry for not understanding! So when your friend covers you, you'll enter a transaction when you repay them and categorize that towards the correct category. If your friend spent $10 buying you lunch, then when you pay them back, categorize the $10 transaction towards Dining Out.

      If your friend is repaying you in cash, you can still categorize the transaction back to the initial category if you have a Cash account in your budget. If you budget for the expense upfront, then you can categorize the reimubrsement as Inflow: To Be Budgeted and budget it towards any of your categories, if you don't budget for the transaction upfront, then you can categorize it as Inflow: To Be Budgeted and then budget to cover the outlying expense.

      Like
Like Follow
  • 3 yrs agoLast active
  • 9Replies
  • 1106Views
  • 3 Following