stumped on negative category balance moving to next month
I have a category for business expenses that will get reimbursed. I recently switched to "new" YNAB and this is the first month that has rolled over into the next month before getting reimbursed. All these expenses are on a credit card.
As I thought would happen, the category balance changed to zero in the new month. But, I'm uncertain as to what else happens, because my numbers don't make sense.
I thought that the top of the budget page would have "overspent in March" as the amount I had left over in that reimubursable category...but it says ZERO overspent in March (I did budget down to zero in March by the way so nothing was left over). Also, I thought the amount available to pay the credit card would have increased to the full amount of the CC balance when it moved to the new month but it didn't do that either. The difference between what it says is available to pay the card is close but not exactly equal to the amount left over in the reimbursable category from last month.
Hi, Orange Falcon
A cc overspend that isn't dealt with before the month turns over increases you cc debt. It's only cash-based overspending that deducts from next month's TBB.
If you overspent on a credit card, and if you received your reimbursement in the month after the expense, you will have to manually budget the funds into the cc payment category. YNAB cannot do this for you automatically once you've crossed the month barrier.
I like to categorize reimbursements directly into the same category that incurred the expense. So this means that after categorizing the inflow, I then have the funds sitting in the expense category. But since the expense occured in a prior month, I now need to use the move money tool (MMT) to move the newly arrived funds from the expense category to the cc payment category.
Does this help?
Hi Orange Falcon !
We know handling reimbursements is important, so a section of our Help Docs is dedicated to it.
Since those expenses were on a credit card, you won't see the amount carryover in your credit card category. Your credit card balance will reflect the spending and you can budget to pay that back down once you receive the reimbursement.
Our Help Docs explain how to handle the reimbursement based on whether you receive it in the same month or a future month.
We also have an article about when the month rolls over, so check it out and let me know if you have any other questions! :)