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?
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Option A:
- 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
Option B:
- 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. :)
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Move Light Sound Life
Move Light Sound Life said:
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'd rather have an extra Payee in the Income part of reports than incorrect averages and totals in my reports.
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nolesrule Oh, I guess I dated all the weird stuff at the beginning for the month before my first full month, and I just always exclude the first weird/half month from reports. Wouldn't have an effect on reports that way.
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Move Light Sound Life Income Payee and category totals and averages will both be ignored if you exclude the initial range. 😉
However, on the budget screen the 12-month average would still include during the first year it if it uses an expense category.
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Move Light Sound Life said:
I would do Option B because I don't like having lots of payees in my Income ReportI 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.
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Nicellla Listen to them. They're better at this than I am. 🙂
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Move Light Sound Life Not better. Just more experienced. You provide lots of great insight on these forums so don't sell yourself short.
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nolesrule Thank you, that was nice to read!
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Move Light Sound Life Yeah, I'm jealous. I just got my "Likes" higher than my post count like, 2 weeks ago. It probably won't even stick 😂. And I've been doing this over 10 years, don't feel bad :).
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Annieland Ha! I didn't get any numbers on purpose! And I'm having a hard time untangling these words, but here's my best shot:
Being wrong doesn't bother me, especially once I understand the mistake. I can only ever give something my best shot.
Habitually being wrong bothers me because it points to an underlying problem, but unless it's due to my own character issues (and even then, I'll isolate to attempt positive growth), I'm not going to beat myself up over not being perfect.* I will, however, work until I get a threshold of high quality (I will not teach something incorrectly) in my job, which is causing issues...I mean, the goal is to be right (and always strive for that), but I'm not divine. I can move forward with my humanity and learn from life. :)
*Writing this out is hilarious, as I used to be a perfectionist. That stopped my first year teaching, as manipulatives that I painstakingly measured evenly, cut straight, color-coded, glued together, etc. were torn to shreds within a week of students using them.
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Thank you! Im still very confused. When I add it asTBB it seems to add it to my credit card payment amount. say my initial payment is 400 when I add the refund of 38.90 as inflow to the CC it makes the available payment as $438.90. I feel like I did it ALL WRONG haha
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Nevermind..... Once I tried option A with the starting balance it all worked out!!! Thank you Move Light Sound Life dakinemaui nolesrule
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