Overspend when moving money between on budget credit lines
I think this could be a bug.
You have two lines of credit : credit 1 and credit 2 with 0 starting balance
Register $500 transaction on credit 1 as "Transfert:Credit 2" to move the money between lines of credit.
There is $500 of to be budgeted money. That's normal, since you borrow money from credit 1.
Put the $500 on the credit 1 budget that way the payment will cover the expense. (see capture 1)
But, in the credit 1 account, YNAB displays an $500 overspend. (see capture 2)
I don't understand. There is no overspending in that case, since this is moving money between two on budget accounts.
PS: the problem still exist if the destination account is not a credit line. The problem occurs because the source is a credit one.
Hi Hot Pink Trumpet ,
HappyDance , nolesrule and jenmas are right that any transfers made from a credit card account are treated as cash advances in YNAB.
When you transfer money out of your credit card account you're essentially borrowing cash. It's new money in your budget that needs to be budgeted.
It shows up as overspending (debt on the card that isn't budgeted for) in your account register and money is added to your To be Budgeted amount (and consequently to your Funds for [Current Month] number).
Since you likely didn't want to incur debt when this happened, you'll want to budget the amount of the transfer to the Credit Card payment category so you have that money available for your eventual payment.
That overspending alert in the Credit Card Payment category will remain through the month, but that will clear out when the next month begins. With no other overspending you can think of that alert as an indication that there was a cash transfer out of the account this month.
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