Over Budget Spending

How do you handle this type of situation?

My pest control company double charged my during the month.  I made a phone call, and they are going to refund the second charge.  In the mean time, I categorized the second charge under "Pest Control," creating an alert with a red -$49.00.  When the refund came through, I planned to add it back into "Pest Control" to eliminate the alert.  However, the month ended, and I have not received the refund yet.  The -$49.00 did not carry over into the current month.

How do I budget the $49.00 when it comes in?

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  • The reason it did not carry over, is YNAB is set up that any red overages are taken care of the first thing in the new month. 

    My cell phone bill is on a true 30 day cycle so I have months with 2 bills, How I handle this is I pay them both, that is what I would do in your situation, then when the refund comes in put it TBB (To Be Budgeted) and put it back where you need it. 

    • Ruff16965 (05bd62cee897) How are they "taken care of?"  Best I can tell is that they just disappeared.  I did notice a mysterious $49 left over in to be budgeted after budgeting out my entire paycheck.  I assumed it had something to do with the "overspending" from the previous month, but not really sure.


      Thank you for such a prompt reply.

    • Rubik's Cube What Tan Drill said. It is the first thing taken out of the TBB when the new month starts. That is YNAB's way of keeping you from accumulating new debt.

  • Was this a credit card transaction, or debit card?

    If it was a credit card transaction, it turn into credit card debt, and you need to budget money to the card payment in order to fix it. (i.e., YNAB will tell you you don't have enough money budgeted to pay your card in full.) If it was a debit card, check, or cash transaction, it's just subtracted from To Be Budgeted when the month rolls over.

    Like 2
    • Tan Drill Thank you.  This is what happened when I paid my car insurance premium with a credit card.  I didn't have enough in my car insurance category when the transaction came through.  However, I could have moved some money around to cover it, but then the month ended.  Now I'm not able to move the money to cover the expense.

      These transactions near the end of the month a messing with my head.  So I need to move the June budgeted money that carried over into July to payment to the credit card.  Do I understand that correctly?

      • mamster
      • mamster
      • 1 yr ago
      • Reported - view

      Rubik's Cube Yes, all you need to do is budget money to the credit card to cover the debt that rolled over from the previous month. Budget enough so that your payment takes the card balance to zero, and you're all set.

  • Hi Rubik's Cube !

    If you have a moment, take a look at our reimbursement Help Doc

    There are two ways to handle reimbursements: 1) Budget for the initial expense, then treat the reimbursement as income or 2) Temporarily overspend, then use the reimbursement to cover it. 

    Since it was red overspending, it was automatically subtracted from your To Be Budgeted when the month rolled over - essentially, it's been covered, so you can categorize the $49 you receive as Inflow: To Be Budgeted once they process your refund.

    • Faness Thank you.  I used option 2.

      Like 1
  • I just wanted to remark that this scenario was a lot easier to handle using YNAB 4's "Red Arrow" function. I wish it hadn't been removed.

    I care about reporting accuracy. I don't think a refund (or reimbursement) should be classified as "income", and I don't think an erroneous charge (or reimbursable-expense) should be classified as "spending". But that's exactly what happens if you record your refunds as "Inflow: To Be Budgeted."

    Instead, my workaround for the new YNAB, to carry negative category balances over to the next month, is to record a negative budget entry at the beginning of the new month. When I eventually receive the refund (or reimbursement) I'll record it as an inflow directly into that category, which should bring the balance back to $0.

    • Hi bret !

      I'm sorry to hear you miss the red arrow! :(

      We did away with the red arrow because it made it too easy for your budget to lie to you. If you carried over -$100 in a category, and another category said $100, then you actually had $0 despite your positive category balance.

      I use a Reimbursements category for anything I expect to be repaid for and a Reimbursements Payee for the actual reimbursement transactions. This keeps things accurate in my reports because I know what I expected to receive back and what I actually received.

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