Credit Card "Payment" negative after paying statement balance
I am having an issue I don't understand.
At the end of every month we create a budget for the next month using the money we earned in the month that just passed. This way we always know that we won't overspend our means.
There is a problem with the way YNAB (or we) handle the credit card section however. All of our sections throughout the month are happy and green. Except the CC section which turns red immediately after I pay off my CC statement every month. From what I have read on these forums, that is because the money I am spending on the CC bill is not budgeted for in this month. Which is true...I budgeted for those expenses last month! I thought that YNAB carried category funds forward into the new month and that this would not be a problem. Is this not the case? Does YNAB not understand that my CC bill payment would be pulling from the previous month's Green categories?
Am I doing this wrong.
I'm having this same problem, or what I think is the same problem! I will pay off my credit card but often times YNAB will give me the below attached message. But this message is impossible. Every single purchase comes out of a category therefore it is impossible that I don't have the money budgeted! For every transaction I list a category, I have no uncategorized transactions. All of my categories have enough funds to support all of my transactions. Therefore how is it possible that my credit card payment was greater than what I had available in my budget. That doesn't make mathematical sense. Someone help please?Reply
This is a list of most ways your credit card account and credit card payment category can get out of sync if you are a "Paid In Full" credit card user:
- starting balance on a paid-in-full card not budget for - category is lower
- overspending in a spedning category - category is lower
- uncategorized transactions - category is lower
- outgoing transfers to other on-budget accounts (e.g., gift card account, mixed funding splits) - category is lower
- purchase/cash-back rewards (should be categorized to TBB) - category is higher
- categorizing item returns as TBB (should use the original spending category instead) - category is higher
- reconciliation adjustment - category is lower for an outflow adjustment, higher for an inflow adjustment
- taking the account balance positive - category should be $0 in this case
There are also some additional issues with returns. If you've spent on multiple cards in a category and have a return, the algorithm will sometimes select the wrong card for the return.
Also, if you make a return on a purchase that you've already made the payment on, it can cause issues as well.Reply
can you post some screen shots? I have never had this problem. My green available is always = to my cc balance. When I paid it, the green available goes to 0 and everything is happy. If I actually carried a balance and paid more than what was available, it would yell at me because I didn't put anything into the budget columnReply
Zellman So I can think of a few scenarios where this might occur. Unfortunately, look at your post payment screen shots isn't that helpful. It would be more helpful to look at prepayment screen shots. If you are a full payment on CC kind of person then this is the scenario that should play out
CC Balance $100 | Budgeted:0.00 | Activity:-100.00 | Available: $100.00
CC Balance $0 | Budgeted:0.00 | Activity:-100.00 | Available: $0
now activity might not always equal because you have refunds...but available should not go red.
So the first scenario where available goes red is the beginning balance thing. To check this is easy, just look at the first line in the register
If you have a beginning balance, it might look like
CC Balance $150 | Budgeted:0.00 | Activity:-100.00 | Available: $100.00
CC Balance $50 | Budgeted:0.00 | Activity:-100.00 | Available: $-50
You've been carrying debt forward and it's negative. To fix this, add the amount to budgeted. Now if you don't actually have an old balance, here's another scenario that might cause this.
Do you have any TRANSFER OUT from your CC.
Here's an example:
You have a paypal account. When you buy something you get a transaction hit on your paypal and then because you used CC as your payment you also have a transaction hit on your CC. You record the hit on your CC as a transfer out to Paypal and record the spend hit on your paypal. The Transfer Out results in funds not going to the AVAILABLE spot in your CC so when you pay it, it thinks you're overpaying. Check for transfer outs and if there are any in your history, that might account for the negative.Reply
Hey Zellman !
It looks like this may have already been answered for you, but in case it helps, here is a video working through some reasons for a red CCP category!
Let us know how that fresh start goes. 😊Reply
This CC thing is absolutely driving me crazy. I love YNAB but I don't know if I have the energy to keep messing with this (my son and his wife are having the same issue). The CC should NEVER show red--when I use my categories to buy and pay for things with the credit card. I never put anything on my credit card that I don't have in that category. UGGGGGGGReply