Cash Category Transfer
I frequently make purchases (primarily on my credit cards) on behalf of my father and sister. To track the amount they each owe me, I have categories for each - Purchases for Dad and Purchases for Sis. Generally, they will transfer me the funds for repayment using GPay, Zelle, Venmo etc... and I then record the inflow into the relevant category, balancing out the original purchases so it nets to $0. Also relevant - I do not track cash (I barely ever use it).
Recently my father repaid me for a few purchases in cash adding up to $45, which I then turned around and spent on a purchase on my sister's behalf. I'm not sure how to record this. For one thing, it happened outside of any of my accounts. For now I've just reduced the budgeted dollars in the Purchases for Sis category to -$45 and changed the Purchases for Dad category to have $45 budgeted in it, but I'd love input on other ways to handle this.
I’m hijacking, because I have a story. We got a rebate check for the first time from our recently opened Costco credit card. My husband used it during the next shopping trip, and she swiped it in the middle of checkout which ended up closing out the purchase, and it was more than what had already been scanned. So she gives him like, $11.xx in cash to cover the overage and starts a new tx to finish our checkout. The havoc this wreaked on my budget was insane. I’ve never tracked CC rebates before, so that was enough of a learning curve, then the stupid handful of cash, and then the incorrect CC category balance. I spent half an afternoon trying to get it to look the way I wanted it to. And forget the nightmare when my kids orchestrate some kind of split expense between them with cash reimbursements and I end up with a handful of piggy bank change to transfer to one of their Money card accounts. The struggle is real so I feel for you!
Hi, Anna! Based on how you're handling reimbursements, I think the way you handled it was perfect and represents reality. :)
FWIW, I don't track reimbursements in YNAB. Instead, I use Splitwise because it will let me keep a tally over time for multiple people and they can cash out using a payment app right from Splitwise. That simplifies things for me, because the only transactions leaving YNAB or going into YNAB are the original spending and the inflow when I'm repaid. I wonder if this would help simplify things for you, too?