Credit card refund with no category
I know this question has been asked a million times BUT Im confused... I purchased something on my credit card before I started using YNAB. I returned it after signing up for YNAB and setting up my budget. I cannot categorize it because the money is just going back on my credit card and the money was never categorized. If I add it to TBB it ups my required payment but I put it in as inflow. My payment that is budgeted is NOT as much as my balance so I would just like to leave it there. Can I just leave it uncategorized?
- Categorize as TBB (because the purchase was technically part of your starting balance).
- Did the return keep your credit card negative?
- If you had debt on the card you want to pay down, you can choose to leave the money in the CC payment category. This sounds like your situation.
- If you were PIF (paid in full = your CC payment category has the positive equivalent of your negative balance, ready to pay it all off at any time... but most people only send the statement balance)... Anyways, if you were PIF, now you have extra money in your CC payment category. Move it wherever you want.
- Did the return take your credit card positive?
- Is your CC Payment Category red? If so, move the money that's now in TBB to your CC payment category.
- If your CC Payment category is green while your account balance is positive, you can just move the money wherever you want
- Categorize to the category that you would have used, had you been YNABing when you made the original purchase.
- Now you have a positive amount in that category, so you can move that money wherever you want (CC payment category if you want to keep the money on/for the card).
I would do Option B because I don't like having lots of payees in my Income Report, but that's about the only difference, long-term. It's slightly more simple in execution, too.
I've seen people suggest Option A a lot, because of the starting balance abstraction, but again, I wouldn't want a return's payee showing up in the Income Report.
I suppose you could also do an Option C, where you alter your starting balance... depending on how long ago that was, I probably would still just stick with Option B. :)
Edited for clarity, because I realized I answered all the scenarios, not just the one you asked about. :)
Move Light Sound Life said:
I would do Option B because I don't like having lots of payees in my Income Report
I would do Option A with a Payee of Starting Balance so it doesn't show up in the Income Report. Put the real store in the memo if it's important.