A Reimbursement Nightmare - Need Some Advice

I've read the reimbursement document, not sure how to handle this one.....................  Any help greatly appreciated

1) I purchased tickets to Asia Pacific in December 2019 for a business trip scheduled for end of January 2020.  

2) I was reimbursed by my employer for that Amex purchase in December 2019 (@$4K to my checking account, direct deposit). 

3)  I paid the Amex charge with those funds before the December Amex statement closed

4) I started using YNAB January 1st, 2020.  Therefore, the tickets were never budgeted, they were simply part of the starting balance on January 1st.

5) Trip was cancelled the day of departure at the direction of my management (coronavirus)

5) The airline refunded the $4K ticket cost directly, as a credit, to my Amex account on February 8th.

So: 

- I have a credit on my Amex bill for $4K, now, from a 2019 charge incurred but not logged in YNAB

- I must reimburse my firm that $4K from my checking account
(otherwise, I've received 2 reimbursements - one from the firm, and one from the airlines)

How do I represent this?

[My approach for other reimbursements, has been to
A) charge the expense to Amex, and allocate it against my Savings: Emergency Fund category (which has a decent positive balance), then

B)  When, when reimbursed to my Checking account  I create an transction for that exact amount allocated back to Savings: Emergency Fund as an inflow.

That won't work here - no initial transaction to offset]

 

Thanks!

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  • Three things:

    1. AMEX is giving you money to pass to work. Record that inflow categorized as Work Expenses (a.k.a., your EF). It's just an advance payment reimbursement, so you are the one who "owes".

    2. The handoff to work: This outflow is recorded to the same category. If work just pays you less, in contrast to you writing them a check, record this as a split:

    Net: the actual amount hitting your account

    Split 1: outflow $4k categorized as Work Expenses / EF

    Split 2: inflow the Net + $4k (your normal salary) as TBB

    3. If the AMEX account balance is positive in YNAB, the associated payment category Available should be $0. Move any excess funds in that case elsewhere in the budget.

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  • A second add on: I would have a “work reimbursement” category which you seed with money from your savings category, rather than using the saving category for these transactions. It will save reporting headaches down the line. 

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      • dakinemaui
      • dakinemaui
      • 4 mths ago
      • 1
      • Reported - view

      WordTenor +1. I meant to point that out as well, but got sidetracked. 🙂

      Like 1
  • Thank you!😄

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