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Another newbie question: handling reimbursements (self.ynab)
submitted 1 year ago by coys25 to c/ynab
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Hi all, Another newbie question here. I manage our family's cellphone plan, which is $199.90/month for 5 lines (two in our household, 3 from other family members). The other family members reimburse me using Venmo each month.

So, I set up a category with the target amount of $199.90, due on the date that our cell phone bill is due, as per YNAB's recommendations. At the beginning of the month, I assigned $199.90 to that category. Then, when our family members' venmo payments came in, I categorized those as inflows to the cell phone account. Now, waiting for the bill, I see:

  • $199.90 in "assigned"
  • +$120 in "activity"
  • $319.90 in "available"

All of this makes sense to me. But, it seems like now I should be able to re-assign $120 to another category. If I try that, though, it suddenly shows the category as underfunded, despite the fact that I still have $199.90 available.

Am I misunderstanding how assigned / activity / available work? Why, after $120 of inflow, is YNAB still requiring me to keep $199.90 assigned?

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[–] [email protected] 3 points 1 year ago* (last edited 1 year ago) (2 children)

The "needed for spending" doesn’t take activity into account, it only looks at the budgeted money. By moving money out again you take away that money.

  • One solution would be to have the payments go straight to "ready to assign" instead (although this screws with your history a bit by making it look like you’re spending all that yourself)
  • Or you could change the budget goal to the amount that you pay yourself and let the family transactions fill up the rest. This is what I’m doing, but it has the downside of not having enough if the payments don’t come. If you fill up the first month yourself and let the payments pre-fill for the next this should probably be fine though.

Maybe someone else (or the YNAB support) has a better solution for this, but afaik that’s the only thing you can do.

[–] [email protected] 2 points 1 year ago

Setting the budget goal to what you intend to pay yourself is what I would recommend. (just another ynab user though.)

[–] coys25 2 points 1 year ago (1 children)

Hmm, yeah - thanks! The first option is what I'd considered, but I wanted to make sure that we were able to see the actual net amount we are paying for our own phones, like you mentioned.

The second idea seems like maybe an ok way to go. Some of the family likes to pay a few months at once (ahead of time) so we would likely always have a buffer. I don't like the risk of being on the hook without budgeted money if someone falls behind, though...

I did reach out to YNAB support. I guess I just don't understand why- as you said- the needed for spending doesn't take the inflows in that category into account. If I wait till the end of the month, I guess that will roll over?

[–] [email protected] 1 points 1 year ago

It’s really worded in a way that makes you think that’s what it’s doing, but I guess the problem is if you budget ahead, how should YNAB know if the money is for the current or the next month.

If you want to be 100% sure you have enough you could add an additional "phone buffer" category, but that obviously has its own downside.

Or, alternatively, you just live with the yellow budget.

[–] [email protected] 2 points 1 year ago (1 children)

(pictures aren't loading for me, so i'm guessing a bit)

it sounds like you've created a 'funding target' goal rather than a 'needed for spending' goal. The first one tracks how much you have assigned this month, while the second tracks the account balance,

[–] coys25 2 points 1 year ago (1 children)

This was it! Thanks - makes much more sense now. Thanks!

[–] [email protected] 1 points 1 year ago

Yay nice!

[–] [email protected] 2 points 1 year ago (1 children)

Ooh, I have a system for exactly this that works very well for me!

I set up a category called "To Be Reimbursed", with a no-date goal of $500. The aim for this category is to be at $500 minus whatever people owe me. To give you an example using your numbers and this system:

In your cellphone plan category, set a goal for $79.96 ($199.90/5*2 (since you cover two portions of the 5)). If your other members pay in advance, put the money in the To Be Reimbursed category (now it would $500 + the money they send you). When the bill comes in, you split it so the $79.96 comes out of your cellphone plan category and the other portion comes out of To Be Reimbursed.

This system is great because, if they pay late, it won't affect your budget at all since you have the buffer. Also, as a nice extra thing, when someone pays me back for something, I add green flags to both the repayment and the transaction they are paying me back for so I can quickly see who still owes me.

Hope this helps!

[–] coys25 1 points 1 year ago (1 children)

Hmm interesting - might give this a try. I also will eventually need to figure out how to do this for work trips, medical stuff getting reimbursed out of an HSA, etc, so I will probably need to set a relatively high amount in this category. I guess that that makes sense, though, since I'm in essence extending a line of credit to all of these people.

So, in your system, do you feel like you get a good view of your spending in these categories? Or is everything just sucked up into the pluses and minuses of the reimbursement category (which may not be a big deal)?

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago) (1 children)

do you feel like you get a good view of your spending in these categories?

In the To Be Reimbursed category, I do not, nor do I think I need it. In my mind, as long as I stay above zero and I can quickly see who still owes what, then that's all the info I need!

The biggest benefit I find is that your budget then reflects your actual expenditures, which makes your "Under budgeted" in a future month actually show a correct amount.

[–] coys25 2 points 1 year ago

Makes sense - thanks!

[–] [email protected] 1 points 1 year ago
  • Make sure the goal is the "needed for spending" type goal
  • Assign the incoming payments from family members against the cellphone category
  • If those payments have arrived and they are marked as cleared, then the goal should be green as incoming counts as spendable money. If those payments are in the future, they won't be counted. Future can be tomorrow, or after the payment is taken, it doesn't matter. If the money isn't in your account it does not count.

Easist way of doing this, assign the full amount and let the excess rollover to the next month. Then from that next month you'll only ever need to budget your share, as you'll be constantly rolling their payments to you.