How to enter a repair bill that will be deducted from rent owing
Yesterday I paid for a furnace repair for $259 that my landlord said to just deduct from my rent due on the 1st that I usually pay the day before (so on the 29th this month). To complicate things further, I put the repair on my credit card. How do I post this correctly? Also confusing me is that I haven't budgeted for rent yet because I will be paid on the 28th and will then budget the income to pay the rent. I've thought about this and can't figure it out so any suggestions are appreciated!
Here's how I'd do it.
1. Categorize the furnace repair expense as Rent. Let the category go overspent.
2. When you get paid on the 28th, budget for your usual rent payment. $259 will immediately move to the Credit Card Payment category, leaving behind the amount you owe your landlord in the Rent category.
That's all there is to it. (If you'd rather not categorize the repair as "Rent," in case this comes up again and you want to track it, use a different category and then budget $259 to that category and the remainder of your usual rent to Rent on the 28th.)