Transfer from tracking account visible as income in Income vs expence report

Hi,
I see transfer from tracking account as income in Income vs expence report. I consider this as not correct, as tracking account is in fact my long term savings account, and should not be visible as income. It is just mony "location" change. If for example I decide to transfer from savings 30000$  to checking for a new car, this report will show me an additional income of 30000$.
Any tips on this?

Thanks

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  • Tracking accounts are not part of your budget. Any transfer from a tracking account to an on-budget account is money entering your budget that wasn't there before and is counted as income. Put your savings account on budget. That's where it belongs and why in order to make it a tracking account you couldn't select Savings as the account type and were forced to select Asset.

    Reply Like 3
  • If your savings account had been part of your budget in the first place, you would have had a new Car category with $30k in it, and the transfer wouldn't have made a difference in your reporting, because transfers between budget accounts don't have categories.

    Reply Like 2
  • This is functioning-as-designed (FAD).  A tracking account is considered an "off-budget" account. When you send money to a tracking account it's considered an outflow. When you withdraw money from a tracking account it's considered income.

    https://docs.youneedabudget.com/article/177-account-types

    Reply Like 2
  • Hm, ok - I see your point, thanks. I am new to YNAB, just 4 th week. I guess there was a reason why I did put those long term saving to tracking account: I think it was showing too high misleading number in total available budget , and I wanted to see only short therm (total money available for month there).

    I will now try to transfer those savings to normal savings budget account. Not sure what would be the best way now, to do it, as there are few transactions already there. I will play and figure it out.

    Thank you all for your help, I appreciate that. :-)

    Reply Like
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 wk ago
      • Reported - view

      Thomas O. Put all your savings accounts on budget. There's no such thing as "misleading", and the budget is not just about short term. You should be watching your savings categories build up month after month. That's how to track your savings progress in YNAB.

      The best thing to do would be just to put the tracking savings account in your budget and put the money into categories per your plan for it.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 wk ago
      • Reported - view

      Thomas O. If it's a linked account, unlink and rename it. Then create the new account in the budget section and move all the transactions from the old tracking account to the new budget account.

      It's been awhile since I've done this, so you may have to add categories to some transactions, and remove categories from transfers to/from that account.

      Then, all you have to do is budget the money to your savings categories back in the month with the starting transaction.

      Reply Like
      • Thomas O.
      • Silver_Mill.2
      • 2 wk ago
      • Reported - view

        nolesrule Cool, I did it as you adviced: movedd all transactions to new budget savings account. Old tracking account can now be closed. 👍

      Yet one more thing: I think I have a problem in understanding how to budget those savings. When I budget 1000$ for savings and add transaction 1000$, I see 2000$ as available, whilst I have just funded the goal. I am not getting something here, please help.

      Reply Like
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 wk ago
      • Reported - view

      Thomas O. I'm not following you. What is the transaction for $1000?

      Reply Like
      • Thomas O.
      • Silver_Mill.2
      • 2 wk ago
      • Reported - view

      nolesrule Actual transfer transaction from checking acc to savings account. I do that in real bank account, so money changes location. Within same bank, but they are actually physically gone from checking account and hit savings acc in the bank.

      So from YNAB savings account perspective it's income transaction for category.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 wk ago
      • Reported - view

      Thomas O. If both accounts are on budget, then you need to make sure it's a single transaction configured as a transfer between the two accounts with no category.

      If you use import, they may show up as individual transactions in each account rather than as a transfer between accounts.

      Reply Like
      • Thomas O.
      • Silver_Mill.2
      • 2 wk ago
      • Reported - view

      nolesrule OK, got it. I did put income transaction with category, that is why. With no category, it works just as you said.

      What if it is external payment (extra money, I mean not transfer) to savings account? Eg I also receive money from renting a flat, that I put directly to savings account. So, I set a monthly goal 1000$ ( I expect this income from rent every month), add transaction directly to savings account with category "holiday fund" and get those 2000 as available, but in fact I got just 1000 available:

      Should I add it as "To be budgeted" with no category like in the previos example? 

      Sorry for being a pain... and thanks for your help again.

      Reply Like
      • bevocat
      • Crazy Cat Lady
      • bevocat
      • 2 wk ago
      • Reported - view

      Thomas O. I think there might be a little bit of a language issue understanding exactly what you're saying, but I will try...

      If you get $1000 and put it directly into your savings account, you will go into the savings account, add a new $1000 inflow transaction and set the category as "Inflow: To Be Budgeted".  That is all you do. (you can make it a monthly recurring transaction and then every month you can just approve the transaction once you've made the deposit)

      Then you should have $1000 available in To Be Budgeted that you can allocate to your various categories.

      I tried to use simple words and sentence structure, but if anything is hard to understand, please ask us.

      Reply Like
      • Thomas O.
      • Silver_Mill.2
      • 2 wk ago
      • Reported - view

      bevocat Ok, got it - thanks.

      So I understand, that as general rule we should never be posting income directly against categories, but

      1. Income always comes as "To be budgeted"
      2.  Categorized transaction, uses always "outflow". 

      I wonder if there are any cases, when to use "inflow" directly in categorized transaction?

      Reply Like
      • monkeyhanger
      • Magenta_Orca_afd6b700a9
      • 2 wk ago
      • 1
      • Reported - view

      Thomas O. As a rule I inflow all income to To Be Budgeted except when it is a reimbursement for something. So if I pay for a group meal and then people subsequently pay me back I will categorise that income directly to Eating Out. 


      You, of course, could put the meal income as To Be Budgeted and then budget it to Eating Out. The net impact on the budget is the same. Where you will see the difference is in the Income and Expense reports so it depends how important they are to you. If you put reimbursements to To Be Budgeted they will be included in both income and expenses for the month. If you budget the reimbursement directly to the appropriate category they are excluded. Income will only show your true income and Eating Out will only show your portion of the meal.

      Reply Like 1
      • Thomas O.
      • Silver_Mill.2
      • 2 wk ago
      • Reported - view

      monkeyhanger I understand, thanks.

      Thank you all for your valuable comments and tips. :-)

      Reply Like
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