Transitioning from YNAB4 to nYNAB: Credit Cards (??!?)

I'm finally trying to take the plunge from YNAB4 into nYNAB and have decided to maintain mirroring budgets for couple months to make sure all transitions well (and that I fully get it) before I completely transition to over to nYNAB. 

I started by setting up nYNAB with the bank account and budget line status for 10/31 (but not importing the transactions for October), intending to start tracking transactions in November in nYNAB...

In October we did a bunch of home projects (fully budgeted for), but charged to credit card with intention to pay in full. These purchases were budgeted for and fully covered! Now, in November, we have paid off the CC. How do I reflect in nYNAB that these purchases were previously budgeted for and the CC payment should not come out of TBB of this month's income? I feel stumped by this one. Right now, the category shows as red with a daunting exclamation point...but they were budgeted for over the past 6 months of sinking funds! 

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    • WordTenor
    • I have the honor to be your obedient servant
    • WordTenor
    • 2 yrs ago
    • 1
    • Reported - view

    Hi Router.

    Try posting your question on the Classic forum so that you don't have to wait for a reply from support. Users there are especially well equipped to help you with the 4 to web transition.

    forum.youneedabudget.com

    Like 1
  • Hi   Silver Router. Welcome to the new YNAB! :-)

    If you have an outstanding balance on a credit card when you set it up in YNAB, and you plan to pay that in full, you’ll need to budget for it in the Credit Card Payments category. That’s what lets the budget know you plan to take some of the money you have and use it to pay off that existing balance. Here’s a video explaining how this works.

    I’m going to mark this as answered, but please feel free to tag me in a reply if I can tie up any more loose ends for you!

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    • April at YNAB 
      Thanks for your response. I get all that...My questions remains: I budgeted for those expenses in sinking funds within YNAB4 (when the purchases were made in October, the budgeted amount was withdrawn from the categories at POS) and now, in nYNAB I am being asked to budget for the CC payment in November out of TBB. The budgeted money that we had saved towards those purchases should be there (somewhere) in the budget waiting for me to make the CC payment - not taken out of TBB....right?

      What am I missing? Or should I just do a fresh CC start after I make those payments and CC balances are back to $0...?

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 yrs ago
      • Reported - view

      Silver Router (9e1535b1d629) Did you start from scratch or did you do a YNAB4 migration?

       

      If you started from scratch, then the CC transactions that consumed the budgeted funds don't exist in YNAB and the balance on the CCs are considered unbudgeted purchases. If you were aligning category balances when you first started (which was after the CC purchases), then the money would be in the To Be Budgeted and not categorized because compared to YNAB4 you would have had more cash across your accounts (nYNAB doesn't count the credit cards as negative cash like it does in YNAB4). As a result you'll have more money available in nYNAB than you did in YNAB4 and that would be used to cover the CC payment.

      Is it possible you didn't do an accurate mirror and assigned those extra funds to some other category?

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      • Patzer
      • Retired at age 60. Thank you, YNAB!
      • Patzer
      • 2 yrs ago
      • 1
      • Reported - view

      Silver Router (9e1535b1d629) The new YNAB methodology requires payments to credit cards to be categorized.  As far as I can understand, the idea is that this is a system that helps someone who either is paying down credit card debt or occasionally carries a balance budget for extinguishing the debt.  I *think* it's designed to work for the paid in full credit card scenario as well; but I didn't have enough patience to figure out how the new YNAB washes paid in full credit cards through budget categories.  So I just told YNAB my credit cards were checking accounts, and then they worked as I expected paid in full cards should work.

      Like 1
    • Patzer That statement is incorrect.  Payments to CC are still just a transfer from one account to another.  There is no category for a CC payment. You must categorize a CC purchase, just as you did before.   

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  • Silver Router

    Thanks for clarifying your question!  nolesrule is spot on. Since the transactions that created that portion of the balance on that card are not part of your new budget, the money to cover those expenses is still part of your To be Budgeted. If you've already assigned them to other categories you can move money from there to your Credit Card Payment category. 

    Of course, you're welcome to do a fresh start after making that payment, but budgeting directly to the Credit Card Payment category should bring everything in line. 

    How does that feel?

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  • Sorry to bump this, but I'm having the same issue, but I'm not quite understanding how to fix it! I definitely did what nolesrule  said... can you explain that in simpler terms somehow? :X

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    • Purple Saxophone (3ecc5c3e549c) 
      What I think I'm realizing is that when I transitioned to nYNAB, because I didn't do the 'migrate' option and rather did it manually, the credit card transaction that had been categorized and budgeted for in YNAB4 did not transition over and that money is now, instead, part of TBB. What I've done is for any credit card with a balance that carried over into my first nYNAB budget I just covered those balances with TBB funds. I'm still managing the two budgets as basically mirrors through this month to make sure I haven't royally screwed this up...
      So, jury is still out, but that was how I understood these comments and what made sense and I've been playing around more in nYNAB...
      I will say though that now I'm anxious to just be in nYNAB...the auto import makes life soooooo much easier!

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    • Silver Router (9e1535b1d629) 

      Weird, I did migrate and, after my first CC payment, my budget is all out of whack. Maybe I'll just try from scratch again 🙁

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