Positive Credit Card Balance and Income:To Be Budgeted

I had a zero balance on a credit card (it was paid off) and a previous purchase was returned creating a positive balance on the credit card.  I added the amount to Income: To Be Budgeted and allocated the dollars.  Now when I add a transaction to the credit card it reduces the positive balance on the credit card but also deducts the amount and I have a negative Income:To Be budgeted.  What did I do wrong?

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  • You still have to budget for the purchases you make on the credit card as it is functioning like a checking account while it is positive 

  • The purchase return should have been categorized back to the original category used for the outflow in order to keep reports accurate.

    This will reduce the CC Payment category and increase the spending category. If the Payment category was $0, it will now be overspent. Since the CC account went positive, this will also increase To Be Budgeted (TBB). Use these funds to correct the overspent Payment category.

    Subsequent purchases will reduce the spending category, but not add to the Payment category. (There is no debt when the card is positive.) TBB should not change.

    • dakinemaui  Thank you-this fixed my problem!

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  • Yes, but what if the original transaction was from BEFORE starting on YNAB? I had the same situation. When I started YNAB this CC had a zero balance. 2 weeks later I got a refund for a returned purchase. The outflow was pre-YNAB so there was nothing to allocate it to. I left it sitting there for a few months, but then my CC company removed the positive balance, putting my CC balance back to zero, and is sending me a check. Now I don’t know what to do. The Return of Credit Balance posted and it’s just sitting there asking me to categorize. Do I have to wait for the check to come? Then what?

    • Tomato Router The original outflow was wrapped up as part of the starting balance, using the category To Be Budgeted. The refund/inflow should have been categorized to that same category.

      Since this took the account balance positive, the To Be Budgeted increased, and you probably budgeted it somewhere (which is exactly what you should have done).

      Record the Return of Credit outflow as a transfer to your checking account by editing the Payee.

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