T Shirt Order on YNAB

I am an acrobatics instructor and I just spent about an hour trying to find the best way to  log this into YNAB.  The expenses are...

Pay designer on Fivr app:  $46
Order 4 Demo Shirts from Printful: $73.52
Order 20 shirts form local screen printer: $150
Total: $269

I sell the shirts for 25 dollars each and I have collected $175 so far.  I tried a few different things.  I settled on making a tracking liability account for the debt of $269.  In the budget I have a category for the shirt income.  I have the names of each person who ordered a shirt and the amount of money they paid me.  When I am done collecting money I will use the profit to pay off the liability account and the remaining money is my take home.  If you were in my shoes how would you do this?

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  • I also run a (very!) small business using YNAB, and I can't think of a better way to do this! However, I don't bother with the tracking account—I use use my Income vs Expense report to see if I'm profitable over any given period.

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    • jacobacro
    • When you budget you tell your money where to go. When you do not budget you wonder where it went.
    • Cornflower_Blue_Cleric.5
    • 3 days ago
    • Reported - view

    What do you do if you have make a 200 dollar order of shirts and the 200 dollars is not paid off until the t-shirts are sold?  The problem I want to avoid is an over-budgeted account, mainly because YNAB does not like you to leave anything in the red.  How do you record that the 200 is a debt that needs to be paid off?

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  • We run a small business as well, and I use YNAB to do the books. I created a tracking account "incoming invoices", and one named "outgoing invoices", So in your case, you would put the $200 invoice from the tees in your 'incoming invoices' as an outflow.  When you pay the supplier, you transfer money from your regular account to the "incoming invoices" tracking account.

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      • jacobacro
      • When you budget you tell your money where to go. When you do not budget you wonder where it went.
      • Cornflower_Blue_Cleric.5
      • 2 days ago
      • Reported - view

      Jan Thanks.  So you have an incoming invoices, which would be a liability tracking account, right?  You also have an assets tracking account for outgoing invoices?  You collect income from the shirts in "outgoing".  When you are done collecting you pay the "incoming" account off with the "outgoing" account?

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      • Jan
      • Slate_Blue_Jackal.6
      • yesterday
      • Reported - view

      jacobacro The incoming invoices are a liability tracking account, that is correct. The outgoing invoices are, as you say, in an assets tracking account.

      Say someone buys a tee. You send them an invoice, which you also put in the assets tracking account with the amount in the "inflow" category.

      When the person pays you, you put that transaction as an outflow to your checking account in your assets tracking account. Keep repeating until all tees are sold.

      When you have to pay your supplier, you transfer the money from your checking account to your liability tracking account.

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