
Returns on a credit card
I bought boots on my credit card. So I added a transaction as an outflow on my credit card under my clothing category.
So on my credit card, I had $0 for payment.
I decided to return my boots. So I added a transaction as an inflow on my credit card under my clothing category.
Now it says it has negative $ for payment and I need to cover for over spending.
This doesn't make sense since if I did cover for it, it's as if I had actually spend the money for my boots, but its a return? How can I fix this?
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(I assume this return did not take the account balance positive, resulting in a credit balance.)
The issue is the Payment category was $0 before the return, so the return takes it negative. (You've no doubt noticed that budgeted outflows increase the Payment category, so hopefully it's no surprise an inflow would decrease it.)
Personally, I'd let it be, because your next budgeted CC purchase or two will probably fix it. If it's not positive by the end of the month, then worry about covering it.
In the future... If this is a paid-in-full card, you might consider paying only what they've asked for -- i.e., the statement balance. This will typically leave money in the Payment category, and that may be enough to prevent the category from going negative when you make a return right after the payment. (Still no interest.)
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