Credit Card Budget Showing underfunded

I purchased items on a linked credit card and the transactions showed up normally and got categorized accordingly as food, transportation, ect.... I paid the credit card early but now YNAB is showing red in the budgeting section. Shows under activity but still showing red under budgeting. 

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  • All stuff has posted and CC is showing a $25 balance which should post to the statement but YNAB shows the following 

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  • It's red because you sent them more than was Available. If those recent purchases were budgeted (no overspending), that amount would have been Available. 

    Usually this is a case of not reserving money to pay off the initial debt (starting balance).

    Move funds from one or more green categories until the CC Payment category covers the current debt (account balance). This is "paid-in-full" status.

    Like 1
  • Starting balance was 0 and the purchases were budgeted in their respective categories 

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

      Sameer Merchant When the account goes positive, TBB increases. Use those seemingly new funds to correct the red CC Payment category. 

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  • What is TBB? The account shows the correct negative balance on the left column. Here is a screenshot of the activity 

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

      Sameer Merchant TBB is To Be Budgeted, at the top of the budget.

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  • I was able to find all those transactions under the correct budget categories and the available is showing 0 so the budgeted amount matches what was spent however the CC is only showing 85.88 under budgeted 

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  • You seem to be pre-paying your purchases. In YNAB's eyes, you're just sending them money without it being available to send to them and therefore warns you. Funds don't become available to send to the CC until after the purchase.

    Your YNAB account went positive (credit balance) on 6/12, and TBB would have increased. It did it again on 6/17, for a further increase. (At this point, though, you may have moved those funds elsewhere in the budget.)

    Bottom line: your CC Payment category Available needs to be $25.90 (covering the entire debt). Move funds to make that happen.

    Like 2
  • Are you pre-paying because you bumping up against your credit ceiling? If not, then I suggest you stop that, as YNAB isn't designed around such a work flow, and you'll run into this issue whenever you generate a credit balance.

    There are some changes you could make to allow this practice without warnings or the busywork of adjusting the Payment category, but that forces paid-in-full status at all times. If you're new to YNAB, I'd recommend keeping the warnings for a while.

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  • Yes, after I made the purchases on the Credit Card I paid it the same day. I understand YNAB would see it as that but after all the transactions posted I would expect it to even out again. I tried to move the funds over from TBB but now it shows up as both budgeted in the category as well as the CC.

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

      Sameer Merchant The T-Mobile payment was the day before, and even on the same day it won't work out automatically.

      Yes, it shows up budgeted in both places. The piece you may be missing is that YNAB gave you the funds to "double-budget" that when it increased To Be Budgeted. You will have to manually adjust things as long as you pay on/before the date of the outflow and use the stock CC handling.

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

      Sameer Merchant The payment date needs to be at least one day after the date of the charge in YNAB, otherwise it will apply the payment before the charge.

      Unless you have a real valid reason for making payments that quickly, you really should stop doing it.

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  • They payments were after but I think it took a few days for the charges to change from "pending" to "posted". If I wait a few days and make sure its showing up as a posted transaction in YNAB before pre-paying will that solve my issue? What can I manually adjust to solve my issue for June?

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

      Bottom line: your CC Payment category Available needs to be $25.90 (covering the entire debt). Move funds to make that happen.

      Like 1
  • Sameer Merchant said:
    If I wait a few days and make sure its showing up as a posted transaction in YNAB before pre-paying will that solve my issue?

    Yes, that's how YNAB is designed to work. Increase debt (via a CC purchase) -> pay off debt. FWIW, you wouldn't be pre-paying if you wait. 🙂

    Like 1
  • Sameer Merchant said:
    it took a few days for the charges to change from "pending" to "posted".

    Entering transactions manually with the correct dates can also keep this from happening. You actually did things in the right order, and the dates coming from the import are what are causing the problem.

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  • Changing the payment dates to after the payments posted on the CC solved the issue. Thank You for explaining this to me. This marks the first full month on YNAB and couldn't be happier. You guys are the real MVP!

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

      Sameer Merchant As a heads up, a return credit after paying the account in full will result in a similarly confusing issue (positive account balance).

      FWIW, most users do not pay the account to $0. They simply pay the amount the CC has requested (i.e., the statement balance) on/slightly before the due date, which will be at least 30 days after those purchases. This leaves  "room" so that a refund typically does not take the account balance positive.

      Paying the statement balance has the further advantage that it can be automated, resulting in less work on your part and a decreased chance of error. Food for thought...

      Like 1
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