Handling cash reimbursements for CC transactions
I paid for two transactions on my credit card:
- AirBNB payment of $390. My friend reimbursed $195 to my savings account.
- Hotel payment for my Mum of $213. Mum reimbursed $213 to my savings account.
This is how I dealt with the transactions:
- AirBNB: Whole credit transaction went to a 'holiday' category. Friends reimbursement also went to the holiday category. I now have $300 in there.
- Mum's Hotel: Whole credit transaction went to "money you are owed" category. Mum's reimbursement also went to the "money you are owed" category. I now have $0 in there.
My credit card account is stating $4,100 but my credit card payment category is saying I only have $3,580 to repay. It's also saying I've only had $3,778 since my last credit card payment. I can't figure out how to fix this!
A YNAB page indicates that I may need to manually move the reimbursement amounts from the specific category to the credit card payment category. BUT:
- AirBNB: That means I'm being double billed for the transaction because the transaction amount has already reduced the category.
- Mum's Hotel: I don't have any money in the category to move. The transaction put it in the negative (-$213), and then mum reimbursed me (+$213) = $0.
(all the figures are approximate)
If the inflow is in the same month as the outflow, money has already moved to the CC Payment category. In that case, the current gap between Payment category and account balances must have been there for some other reason.
TBH, this is one reason why I use a dedicated category for reimbursable expenses. When using the Temporary Debt approach in the budget, if the reimbursement category turns green, you need to move those funds. Simple. (This takes care of all the "timing" issues mentioned in the docs.)
It sounds like Mum's expense & outflow went to a dedicated category. That category isn't green, so funds already moved.
[EDIT: confirmed -- funds already moved to the CC based on this statement you made: "The transaction put it in the negative (-$213), and then mum reimbursed me (+$213) = $0."]
You may wish to split the AirBNB outflow between your Holiday category (your portion) and a category for your friend's portion. Inflow their $195 to their category. If it turns green, move the funds to the CC Payment category.
Pat C said:
AirBNB: That means I'm being double billed for the transaction because the transaction amount has already reduced the category.
You incurred debt and you have cash in hand. Your friend was effectively an ATM machine for a withdrawal from the CC. You can think of that cash being budgeted in the Holiday category if you like.
Another way to look at it: there is no double-billing because the Holiday category was paid-back (via the inflow that was categorized as Holiday).
Once you get your card back to paid-in-full status, you might consider switching to using a checking account to represent it. This will force PIF status -- thus IMPOSSIBLE to grow post-payment debt -- and any missed overspending comes out of the following month's TBB
I switched my credit card account to a checking account within YNAB and it alleviated all the potential credit card mishaps. I highly recommend it.