Not understanding how to enter income

November is my first month budgeting with YNAB.

As it happens, I'm also in the middle of selling and buying our house, which makes for some large irregular inflows and outflows (hence the large sum withdrawn from savings to place part of the deposit on the new property. )

I'm getting the hang of syncing to my bank accounts and have reconciled accounts up until a week ago.

However all November income is listed under Expense

The results seems to be that the budget tells me I've 'assigned $25,4670.68 more than I have'.   I can't see how to enter Income against the green Income heading. So I'm confused.

 

 

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  • To enter income and have it counted as income and not a positive expense, you need to use the Inflow: Ready To Assign category. If you want to identify different source of income, use a different payee per source of income.

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  • Note: if you enter income directly in another category and want to release the money to use to assign to other categories, you first need to move the money out of the category to Ready To Assign. It will create a negative entry in the Assign column but that's fine. It is simply telling you you are taking money out of this category this month to put in other categories, which you are.

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  • I read that in the help text, but I still can't understand where 'ready to assign category' is found. I have a category 'Income' where I entered the amount incoming for November - isn't that it?

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      • SgtBatten
      • "YNAB broke" since 2013
      • SgtBatten
      • 11 days ago
      • Reported - view

      Quotidian You would create a transaction in a bank account with payee something like "work" and category "Inflow: Ready To Assign"

      that category is not something you have to create or setup, it just exists in YNAB already.

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  • The category is automatically there by default in YNAB. The income category you have was created by yourself and is not needed.

     

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  • Maybe I renamed 'Inflow: Ready to Assign' to 'Income'? Would that explain what I'm seeing?

     

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      • SgtBatten
      • "YNAB broke" since 2013
      • SgtBatten
      • 11 days ago
      • Reported - view

      Quotidian No what you did was create Income as a budget category and have been using those categories instead.

       

      If you go to the relevant account on the left and then edit the income transactions you can change the category.

      In fact, you can delete all those income categories from the budget screen first, this will mean all the income items get highlighted as needing a category which will make it obvious which transactions you now need to edit to be categorised as Ready to Assign

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  • It doesn't appear in your budget screen with the other categories since it corresponds to the Ready To Assign category. The big box at the top.

    Edit: you can't rename it I think.

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  • SgtBatten said:
    If you go to the relevant account on the left and then edit the income transactions you can change the category.

     So you mean add income accounts as a type of account, rather than as a type of transaction?

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      • Ceeses
      • Ceeses
      • 11 days ago
      • Reported - view

      Quotidian No. Go to an account ledger. Click add transaction. Click the category drop down. The first category at the top of the drop down should be the screenshot I sent before.

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      • SgtBatten
      • "YNAB broke" since 2013
      • SgtBatten
      • 11 days ago
      • Reported - view

      Quotidian Lets look at your consulting income as an example. 

      I am guessing in one of your accounts you have a transaction for $5000. Currently it is categorised as "Consulting Income XXXX" according to one of your images. If you double click on that and change it to ready to assign, everything will make sense.

      You've done it all right except the category of the income transactions you already entered.

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  • Right! Now I get it. Somehow I didn't pick this up from the helptext or intro videos. Thanks.

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  • So, income - being paid by an employer - and transfers in - transferring money into an expense account from e.g. another savings account -  should both be categorised as Ready to Assign?

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      • Ceeses
      • Ceeses
      • 11 days ago
      • Reported - view

      Quotidian Transfers can be different. If all the accounts involved are on budget, then there is no category needed.

      If the money comes from outside the budget, then a category is needed. And there the views can vary a lot. Some people say it's not new income so it can go directly in the category it is going to be used for. But then your reports in YNAB can't be used to view the total expense in that category. That's because the inflow from the transfer cancels the outflows. You could still see the total by searching for that category in the All Account view and filtering only the outflows. So it really depends on what you want to see.

      Personally, I just put it in Inflow: Ready to Assign as I prefer to use my reports to inform me on the cost of stuff I buy. I'm fine with the money coming in being seen as new income even if I owned it before. Mostly because it is shown as expense when I move it out to the non-budget account in the first place.

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      • Ceeses
      • Ceeses
      • 11 days ago
      • 1
      • Reported - view

      Quotidian One more thing: if the other savings account is really just a savings account, why not considering putting it on budget and budgeting that money? This can be useful: https://www.youneedabudget.com/your-budget-is-your-savings-category/

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    • Quotidian Just popping in to share some resources to support the conversation. :)

      When you're adding income, you'll want to categorize that as Ready to Assign as folks here have pointed out.

      FMI: https://docs.youneedabudget.com/article/31-adding-income

       

      For transfers from one account to another, you'll notice that when you click on the Payee field theres a list of accounts you can transfer money to/from. You'll create a transaction in your origin account and select the account you're transferring to from the payee drop-down menu. From there, you won't need a category! 

      FMI: https://docs.youneedabudget.com/article/168-making-a-transfer

       

      When you transfer money, note that nothing changes in your budget, so if you need to change the job that money has in your budget, you'll need to move money in your categories.

      FMI: https://docs.youneedabudget.com/article/1679-why-doesnt-my-category-balance-match-my-account-balance

      Hope that helps!

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  • Does help! Actually I have gotten the hang of transfers now, I have some accounts that for one reason or another are not included in the YNAB list, so anything coming in from them I'm treating as 'ready to assign' whereas, as you say, transfers between accounts on the list are more or less automatically handled.

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