When you owe money to someone who also owes you money in return
Help! Okay I am sure this is a kind of dumb question but I'm at a loss for what to do because everything I've tried either ends up with about $1000 extra in my budget (that doesn't exist) or about $1000 too little in my budget (that does actually exist in my bank account.)
I own property with a family member and there are some shared recurring expenses. Typically I pay these expenses and the family member pays me back for their half. *However,* I also owe the family member some money, and moving forward, part of the money they pay me as a reimbursement will go towards the debt I owe them. No money actually changes hands, we just cancel the appropriate portion of the debt.
I have the debt set up in YNAB as a line of credit, and all the expenses are accounted for in the appropriate categories (paid in full by me). I just don't know how to handle the reimbursement from the family member since I don't actually have any money from them... just several budget categories where I spent more than I budgeted.
How should I account for this?
I've done the same thing but on a smaller scale by using split transactions.
For instance: they owe you $10 but you want to record that as payment towards the line of credit. You can create a transaction with a net $0 and one of the splits shows $10 outflow (transfer) to the line of credit account and $10 inflow into the desired budget category they are reimbursing you for.