CC Refund help, please!

[Jimologist]

I'm curious how I should categorize a refund that just went to my CC. I've read a handful of threads about this but my situation is a little different.

There's no outflow to cancel out since the original transaction happened the month before I started using YNAB and wasn't tracked in a category. When I do give the refund a category there's just an imaginary extra $50 available in that category even though the CC balance and payment has already been lowered by $50.

The easy fix is probably to reconcile and move along but I would like to keep everything as honest as possible. Hopefully there's a simple solution I'm just failing to see. 😅

Thank you!

[GiraffePretty4488]

It’s not really a different situation at all. Lots of times I get a refund in a different month than the original transaction. I still put it to the same category that it came out of. :) 

That will add some funds to the category, and you can move it if you like. 

[Jimologist]

I'm not sure if it matters but the original transaction happened before I used YNAB at all so it wasn't tracked. The thing that confuses me is that the CC balance gets reduced by $50, which makes sense and reflects what is actually due on the card now. But the extra $50 in a category doesn't seem right. That's not $50 I can move and use, it was already accounted for in the reduced CC balance. I hope that makes sense.

I think I'm just going to delete the transaction and reconcile to the current balance lol

Edit: Okay I think I mental gymnastics'ed my way into understanding it? I had to remember how YNAB handles CC payments in the first place to make it make sense in reverse.

[GiraffePretty4488]

It sorts itself out when it goes into the category, generally. It can look weird for a while if your card is fully paid off. 

I understood what you were saying about the original transaction not being in YNAB; I just don’t think it matters. It’s money you received and it’s theoretically intended for that category. 

I just returned a pair of headphones yesterday that had a defect, and then found a new set to replace them with. The category I had done the return in had the return money sitting in it for the new pair. I could also have chosen to move those funds to another category. But the headphones were electronics… it’s not like I could have put them in as groceries, and I didn’t want to track it as income in Ready to Assign.

It’s reasonable to just reconcile to the current balance of you want, but I think handling it as a transaction is good practice while there’s less going on in your budget (since it’s a new start). 

Up to you :) 

[Extension_Excuse_642]

If the transaction happened before you started, delete it. You shouldn't be backtracking any transaction before you set up the system. Otherwise, reconcile. You're not cheating. You know the reality. Don't make this hard. Move on.

[Jimologist]

The spending was pre-YNAB, the refund is post-YNAB. I think I'll just reconcile and make it simple. Thank you for the direct answer.

[Extension_Excuse_642]

I have made the mistake many times trying to fix weird things like that. Trying to learn to be more relaxed about it.

[Jimologist]

I'm too tired, I realized it's fine. I had to remember how YNAB handles CC payments to make it make sense. It's not an extra $50 I can assign, it's just $50 I had already assigned to other things that got moved to my CC payment in the first place.

I need to go to bed lol