Reimbursement problem

I'm really struggling to figure out how to handle finances with my dad. Sometimes I pay for him, sometimes he pays for me and I need to track the balance.
That's why I created a "Dad and me" category, but I'm having problems with ynab that I don't manage to solve:
A plumber worked at my home and at my Dad's home and charged us  100 Euro.
My father  payed for both of us. So I owe him 50 Euro.  I made an inflow transaction  of 50 Euro (as "Dad and me" category  and an Outflow of 50 Euro for the plumber ("Home manteinance".
  "Dad and me"  on my budget is +50 for that category, as I owe him 50 Euro and I can spend it without any reimbursement from him.
But something is not working:
+ 50 Euro available would be correct if they were in my pocket to spend for my father, but
I also  entered  a -50 Euro transaction as "Home maintenance" as I have spent it  for the plumber.
Ynab now is saying I overspent  50 Euro I didn't have  for the plumber and it has to be fixed
The balance in my account is correct as I have a +50 Euro Transaction and a -50 Euro Transaction.

If I enter 50 Euro as  "Ready to assign" instead of "Dad and me", the budget is ok, but I do not track the debt to my father
What should I do?
thanks a lot
Simone

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  • You are correct to setup a transaction for the Home maintenance category for your part of the plumbing work. But like with any transaction, it needs to be budgeted for (have money assigned to the category) as you can't spend money out of thin air.

    With the 2 transactions: inflow to Dad and me and outflow to Home maintenance, it's somewhat equivalent to moving money between your categories. You are typically telling your budget: I don't need $50 for Home maintenance but now I need it to pay back my Dad. So if you didn't have at least $50 assigned to the Home maintenance category, where is the money to pay back your Dad coming from? That's what the overspending is telling you.

    As an aside, the 2 transactions with the inflow to Dad and me and the outflow to the Home maintenance category can be entered as a split transaction with a net of $0 (in inflow or outflow, it doesn't matter). It acts the same way, but if you enter it as a split transaction, you keep the logic the 2 transactions are linked together.

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  • Ceeses  thank you for your reply.
    The point is that I would have  had to pay the plumber immediately, but as as have a continuous flow back and forth with my father  I don't need any more cash right now, I can pay my debt buying his groceries next time  (October is ending in one week).
    How do I fix it?
    ( Now I payed his dinner delivery with my card and registered 21 Euro in "dad and me category" is it correct?)
    Thanks again

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  • I did it with a split transaction as you suggested.
    I've spent 50 Euro not taking cash from my accounts but by debt to my father.
    I can't  cover overspending with emergency funds or other categories, as it is already covered by "debt" to my father.
    What should I do?

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  • Let's take a Simple example. Let's assume you start your budgeting in YNAB. You have one account with $100 in it. You decide to assign it all to groceries. So you have the current available:

    Groceries: $100

    Home maintenance: $0

    Dad to me: $0

    Now, a few days later you need the plumber. Your dad pays so you get:

    Groceries : $100

    Home maintenance: -$50

    Dad to me: $50

    Then, you go get groceries and your dad asks you get some for him. You check your budget and see you can spend $100 on groceries for you and $50 on groceries for your dad. But your account only has $100 in it!

    It's because you are saying you have money to pay back your dad for the plumber even if you didn't have money to pay the plumber in the first place. If your dad hadn't paid, you would have had to move money around to repurpose the money to pay the plumber. You still need to do the same thing except now the money will be repurposed to pay back your dad for the plumber.

    In short, don't leave overspend categories in your budget! Except the Dad to me. If it's overspent at the month rollover, you will have to recreate the negative by moving money out of the category in the new month budget.

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  • What about a different solution?
    I make an inflow transaction Payee: Dad  category "Ready to assign"  and assign the 50 more Euro I have to Home  Manteinance.
    Now: in the category DAD   my father owes me 27 Euro.
    I know that in the previous transaction he gave me 50.
    Any way I can partially settle this even manually checking  Payee transactions?
    How do I get out of this problem?
    thanks

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  • Simone Some people like to use Splitwise in conjunction with YNAB for this sort of regular splitting. I wonder if that would help you and your dad?

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