When you transfer funds between linked accounts...how does YNAB handle it?
Okay, let's say you have two accounts that are added via linking.
What happens when you transfer money from one to the other? Does YNAB see two transactions for the same amount that offset each other? To clear them out, would I simply assign them to the same dummy category so it remains at zero?
I also know that there's the option of consolidating the funds and then earmarking the portion that is in the 2nd account as a budget category while keeping the funds all in the same account...this is a possibility, but if the value of the account is significant, then having it in a higher yield account makes sense too.
Do you do manual entry with your imports from linked accounts solely as backup? If so you will have to do some matching because YNAB will import the data as a transaction from each account, not as a transfer between 2 accounts. If you only do imports, you are going to have to manually fix the Payees to turn it from a transaction to a transfer (payee To/From:Account Name).
Does YNAB see two transactions for the same amount that offset each other? To clear them out, would I simply assign them to the same dummy category so it remains at zero?
As long as you choose the right payee, YNAB will take care of the category field for you by making it unnecessary. We don't need a category for exactly the reason you outlined - no money is entering or exiting the budget at large! Here's a bit more on how to record transfers - let us know how it's going!