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?

 

Thanks!

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  • It needs to be entered as a transfer from one account to another in the payee column and then it won’t need a category. It will automatically come out of your CC category and all will be well.

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  • I do not see "Citibank CC" in my list of accounts to transfer to.

    I think what you mean is I need to mark it as a "Payment from: checking" as the payee - is that correct?

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  • It definitely should  be there. Try typing Transfer: and see if it will fill in.  

    But it’s late at night and you probably want to just fix it, so you might try going into the Citibank account and work from that end. 

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  • Sorry for my confusion. I’ve seen it as Payment and as Transfer. Maybe it’s the difference between PC and iPhone. But the effect is a transfer between accounts. 

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  • You’ll need to budget $110.37 to the credit card payments section as well. 

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  • When doing a transfer, you pick the account on the other end of the transfer from the account register you are entering. So if it's between checking and CC1 and you are in the CC1 register, you would transfer from checking. If you are in the checking register, you would transfer to CC1.

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  • 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.

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  • Almost? 

    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. 

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  • I think I got it.  Thanks for the reply.  I will continue working with/learning the software.

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