when someone owes you money that will be paid back over time
i am sure this has been dealt with many times but I cannot find what I am looking for
both me and my parents and trialling new YNAB from YNAB 4 so we both have similar situations
How do you track an ongoing debt someone has to you, which will be there across months?
So far what I have tried for me is to put it in as an account with the amount they owe me as a positive balance, and then have budgeted that amount to a category called XY owes me so that the account's balance isn't accidentally looking like I have more money available than I actually have to budget for me.
Then, if I buy something on their behalf or whatever happens to add to their debt I put in it in as transfer to that XY owes account from the card or account the purchase was made from.
If they buy something for me I put it in as a purchase in that XY owes account and categorise it wherever it should be categorised (groceries etc) so my spending is captured and it reduces the debt.
So, when they pay me back, or have made a purchase on my behalf, the money would be a transfer from that account back to me, which means the account balance is always an accurate reflection of their debt.
The tricky part is that the money that comes back would then be available to budget, but that will be a very manual process I have to keep track of - which makes me think I am missing something.
If they do a money transfer to reduce the debt that is easy, but when they purchase something for me that cannot be categorised both a 'groceries' and 'available to budget'
For my parent's example in YNAB4 it worked the same, although they are owed a much bigger amount and it involves a line of credit in their name which is used by someone else so there are lots of movements of money.
The tricky part is ensuring that we don't accidentally think we have more money than we do because their debt is a positive balance. (If we make it a negative then it creates all sorts of other problems, and making the transactions transfers doesn't work)
But also that when we do get a repayment making sure that money is now available to use for other things
Is there a better way to do this in the newYNAB? It was the best we settled on in YNAB 4
Between my parents and I we also have each other as an account and track it like this and regularly sit and compare our YNAB owings to each other which go back and forth, but for YNAB 4 I put it in mine as a credit card so the $94 i owed them at the start of this month when I did the fresh start is budgeted for as a credit card payment, which actually captures it all nicely
[Tried to edit my earlier post and wound up reporting/hiding it instead. Reposting, hope it helps.]
Easiest approach is to give $X the job of covering for these missing funds. (Budget to a Whoever Expenses category. $X is enough to keep the category positive.)
If the category is less than $X, you are owed money. Simple. Record $X in the category name for reference. Or set a Goal.
I create a far future-dated transaction with the balance owed. Every time I am paid back, I enter the deposit, into whatever category, and a memo that will be usable for searching in case a dispute arises about the outstanding balance. Every time a repayment is made, I subtract it from the original transaction’s amount so it reflects the current balance.
It’s worked with tracking roommate stuff so far.