Credit Card Refunds
If you’ve recently returned a purchase you made on your credit card, you might be wondering—which category should I select for the refund?
To quickly determine the answer, ask yourself the following: “Is this inflow to my credit card offsetting a previously funded expense that's already in YNAB?”
In This Article
- Yes, this is a refund from a funded purchase in YNAB
- No, this refund is for an unfunded (or pre-YNAB) purchase
Yes, this is a refund from a funded purchase in YNAB
If the answer is yes, because you’ve received a refund from a purchase return, categorize that refund right back to the original spending category.
When you do this, money will automatically move from the Credit Card Payment category back to the spending category — opposite how it moved when you made the original purchase. You can then move money out of that category if you don't want to spend it there.
This will also help keep your reports happy since your spending will be offset by the amount of the return.
If you paid off your card between your original purchase and your refund, you might see that your payment category is short and goes red. To get things back in line, move money from the spending category to the Credit Card Payment category, and you'll be back on track.
No, this refund is for an unfunded (or pre-YNAB) purchase
If the answer is no, because you’ve returned something you bought before the date your budget started, or the original purchase wasn't funded in the spending category, there’s no funded spending that needs to be offset in your reports by the return. Choose Inflow: Ready to Assign for the category.
Since it's an inflow to a credit card account, though, you won't see Ready to Assign increase—unless it created a positive balance on the card. The inflow simply reduces the balance owed on that card. This accurately reflects what happened in your account, too: the credit is applied, and now you owe less money. If you're working to pay down debt, you're that much closer now!
But what if you had already budgeted for the entire balance on the card? Let's say you owed $475 before receiving a refund for $75—and you already had the full $475 set aside in your Credit Card Payment category. Now you only owe $400.
Move that extra $75 to another category in your budget. Once you've done that, your Credit Card Payment Category Available amount will match your credit card account balance of $400.