How to handle CC transaction

I did some shopping for my father-in-law.  I paid with my CC and he gave me cash.  How do I record the CC transaction, and how to I handle the cash I now have in my pocket?  I do have a "Wallet" account which I use for walking around money.  Example: I withdraw cash from my checking account, and I record that amount in "Wallet".  Then as I pay for things with cash, I record the transaction in Wallet, moving the amount to the appropriate budget category.  So I'm thinking I can use my Wallet account for this, but am not sure how.

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  • Record exactly as things happened in the real world. Outflow transaction in your CC register categorized as Father In Law, and an inflow transaction in your Wallet register categorized as Father In Law.

    If you're paid back in the same month, then you're done -- the budget takes care of itself.

    If the month will end before you're paid back, look into one of the recommended approaches for the budget portion discussed here:

    https://docs.youneedabudget.com/article/183-reimbursements

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  • Thanks for your reply....here's what I decided to do....I sent the CC transaction to my Groceries category and approved it, just as if I'd bought the groceries for myself.  But the next time I grocery shop, I'll pay with the cash my father-in-law had paid me for reimbursement.  So everything should be nice and neat :)

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      • P. Gillespie
      • loves YNAB
      • LAMB_CHOP
      • 5 mths ago
      • Reported - view

      GaryD That works, but it might make it look like you spent more money on groceries than you do for yourself normally. If that doesn’t bother you, you’re good to go. When you receive the cash, I would categorize it as grocery inflow (instead of income/to be budgeted) to your wallet account. This will put money directly back into your grocery budget and your monthly grocery spend doesn’t get thrown off.

      In my exact case, I don’t keep a wallet account any more, so I personally would categorize the grocery transaction as cash.

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  • Thanks for the reply.  I think my method accurately reflects what I spent on groceries for myself.  I just have to remember the next time I checkout at the grocery store to use the cash in my wallet.  I won't even record this transaction in YNAB as it's entirely cash (and it went into my budget a few days earlier when I bought the groceries for my father-in-law).  So I think my grocery spending category is "nice and neat", which is how I like it :)

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 5 mths ago
      • Reported - view

      GaryD What happens if you use some of that cash for something else? Your plan will fall apart.

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  • It was a modest amount, only $28.47, plus I don't anticipate doing this very often.  Agreed, if I was doing lots of shopping for him, it could get confusing.  But I went shopping a couple days later for myself, and I fed in the $28.47 in cash to the self checkout at Walmart, and paid for the rest with my CC.  So my books are in order :)

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      • dakinemaui
      • dakinemaui
      • 5 mths ago
      • Reported - view

      GaryD Just seems a bit strange that you have a Wallet account but didn't want to use it. Clearly, you're better at juggling these things mentally than I am -- I use YNAB so I don't have to. 😉

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