Credit Card question: Available amount
I use my credit card as a daily payment method (apple pay, supermarket etc.) and always pay it at full at the end of the month (thats an automatic process). It is also used at ATM cash mashines to get cash.
This month I had spent 456,60 € via CC payments and it was payed on the 22. december via transfer from my main account. Then I withdrew 50 € with the CC which I modelled in YNAB via a 50€ transfer from CC to my Wallet account.
So I budgeted 456,60 € + 50 € = 506,60 € for my CC. But my activity only shows 456,60 € and so YNAB thinks, I have 50 € left in the CC budget. Which I dont, because I transfered it to the wallet.
When I remove 50 € from the CC budget, it tells my that I need another 50 to stay on track. When I readd them, it tells me I have 50 available.
Why is that? I expect the available budget to be 0 € and not 50 €
You still have the 50 balance from the withdrawal, so it needs to be budgeted for in order to keep the pay in full status.
It did not appear in Activity because a transfer cash withdrawal is an uncategorized transaction, and only budgeted transactions from categories or payments and refunds will appear in Activity. For the same reason, the 50 will appear as overspending on the Credit Card register screen, even though you've budgeted to cover it.
Cadet Blue Griffin said:
Still want to understand the concept.
There's lots of ways to look at this, but here's one...
Ordinarily, when you pay with a CC, you take on debt and the CC gives the vendor money. When you get a cash advance and then pay with cash, you still take on debt and then you give the vendor the CC's money. You're just the middleman.
In the budget (assuming the spending category had sufficient funds), when paying with a CC, the spending category is decremented and the CC Payment category is increased automatically. When you're the middleman, the spending category is still decremented, but YNAB doesn't know the CC Payment category should increase. Therefore, you need to do it, so you might as well do it immediately upon withdrawal.
In case you're thinking that you're somehow short because of this, you must realize that TBB is increased during the cash advance. YNAB is giving you extra funds in the budget that you didn't have before, so you're not out anything if you put them toward the CC Payment category.
You'd probably find it helpful to make a few test transactions and see how the spending category, CC Payment category, and TBB change during the sequence.