accounting for items paid for by cash

I have a budget item that I know how much I will need to budget for but I only pay for it by cash(out of a register and not by getting money through the ATM). How do I account for the item paid for with cash?

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  • You should keep an account that represents your cash on-hand.

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  • Can you explain further? 

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      • dakinemaui
      • dakinemaui
      • 6 mths ago
      • 1
      • Reported - view

      Shannon Ruth Accounts are simply locations for your money. A bank is one location. Your wallet or purse or safe are also just locations.

      Add an account in YNAB to represent your wallet and make a plan for (i.e., budget) any cash in that account. Record any spending with a transaction in that particular account.

      If you move money between locations (accounts), record a transfer in YNAB.

      Like 1
  • Hi Shannon Ruth !

    You can handle cash as an account or a category—we cover how to handle cash spending in our Help Docs, to see which one works best for your budget.

    Or learn all about working with cash in your budget in our Handling Cash workshop! 🙂 Let me know if you have any questions.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 6 mths ago
      • 1
      • Reported - view

      Nicole The descriptions on that page don't work for the scenrio described

      You'd have to do it the opposite way and make the spending part of the net deposit of cash int oa bank account using a split transaction, which is the opposite of a cash withdrawal.  For example, let's say you have $200 in the register, you spend $20 and deposit $180...

      Top Line: Cash Deposit $180 Inflow
      Split 1 - Income:TBB $200 Inflow
      Split 2 - Spending Category $20 Outflow

      On the budget screen you'll have $200 to budget.

       

      Alternatively, you could create a cash account. You would record $200 as income into the cash account. $20 as categorized spending. Then the deposit would be a $180 transfer between cash account and the bank account.

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  • Thank you everyone! Yes, this makes sense, I just had not thought of opening another account as a cash account. I will give it a try!

     

    Thanks for all the help!

    Shannon

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