Credit Card Overpayment - where does it go?

Long time YNAB user and I rarely get stumped ... but I'm stumped.

In December I accidently paid a credit card off twice, resulting in a positive balance. When I noticed, I immediately budgeted the second payment in YNAB and I contacted the company and they sent a refund check, which I received today.

For ease of numbers, here's how it went down:
Dec 1 - $250 in gifts purchased on CC for budgeted spending,, $250 available for payment

Dec 28th - realized I made two $250 payments, or $500 out of checking and into CC. Budgeted an additional $250 to the CC category to cover the payment and called the CC to get a refund of the balance.

Jan 8 - Got check for $250. 

I can't for the life of me figure out how to add that money back into my budget. Here are the things I've tried (all in YNAB. In reality, I deposit the check into checking and the CC company recorded a refund so that account has a 0 balance):

Deposit the check directly into checking: results in an available amount of the check BUT the credit card account still appears to have a positive balance.

so ... tried doing a transfer from the CC account to the checking account which makes the CC account show the correct 0 balance, the correct amount in the Checking, but no funds available to budget.

so ... tried deleting the extra payment from the CC account (and of course the linked one in checking because that's how it works) and now it shows a positive balance in the credit card category, the funds are back in checking, but it says I've assigned more money than I have in THIS month. 

I'm just kind of at a loss. This is money I budgeted as leaving my account and now am adding it back in and I can't get it available to budget. It was originally budgeted to pay the credit card so somehow I need to show that I got the money back in my budget and also that the CC has no balance.

Any ideas?

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  • This is acting like a "doesn't matter where your money is" situation, which would say the money is in my budget already - but it was budgeted to make the CC payment. Where is it now?

    For now, I guess that's how I'll look at it - even though it wasn't "spent" per se I just moved it from one account to another and it never really left my budget. I suppose if I had spent the credit on the card that would not reduce my checking balance so it's starting to make logical sense.

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  • Tif_Ann said:
    so ... tried doing a transfer from the CC account to the checking account which makes the CC account show the correct 0 balance, the correct amount in the Checking, but no funds available to budget.

     This is the correct method. There is no "new" money but rather moving between accounts. The budgeted amount on your credit card should be more than what you owe. Move that money to other categories. 

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      • Tif_Ann
      • Tif_Ann
      • 2 wk ago
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      MadDog Yeah, I get that normally, just didn't think that money was reflected in my budget since it was budgeted to the CC category which was zeroed out and when I started budgeting this month it wasn't "added" to my available. It's the first time in years it's taken a while to wrap my brain around and I still question what category that money was sitting in for the last few weeks and how it got there, but the math works and I'm just moving on.

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    • Tif_Ann I think the missing piece of the puzzle is that when you overpay your credit card, the positive balance is in Ready to Assign. You then assigned it back to your Credit Card Payment category, which is spot on. Handling the refund check as a transfer is appropriate, and you've lost no money in the shuffle! 😊

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