Now I'm totally confused regarding credit card payment
Still new so trying to "get this."
I have a credit card with a balance of $110.37:
I paid my credit card and this shows up as a transaction in my "transactions". It has also been accounted for automatically (see above) in the "activity" column for this credit card.
Nontheless, I go to handle my transactions to place them into categories and I see this:
Which is the payment that went to my credit card.
So, I click on "This needs a category" expecting to place this transaction into the "Citibank CC - 2nd" category, however it is that category is not available in the list, I only see a list of other categories, but not the one for the CC.
So two questions:
1) This "activity" automatically shows up in my credit card (Citibank CC - 2nd) "activity" column in this months "budget" - why is it telling me I need to categorize the transaction?
2) How do I properly categorize this transaction?
Cool ya'll. I think I got it. My summary:
1) CC transaction (from linked account): set "payee" as "Transfer from: checking"
2) Citibank card: "Add $110.37 to the budgeted items in the left-hand column in order to make the "available" column zero.
3) Ignore the fact that YNBA automatically posts this transaction into the "Activity" column for the credit card.
When you spend on a credit card the transactions are automatically subtracted from the appropriate category (groceries) and the Cc category available to pay goes up by that amount. The money will be ready and waiting for you to pay the CC bill. HOWEVER since you are new to YNAB you started with a CC balance and the above process didn't happen. New users have to budget the money to pay the starting balance manually.
If you can pay it in full, you budget the full amount. If not, you budget the partial amount and whittle it down over time. But your new spending will be covered by YNAB automatically moving the money.