Starting YNAB - people owe us money

annaikeannaike Posts: 3Member
Hi.  We are just trialing YNAB and so far we are pretty pleased with it.  But we are still trying to get the set up correct - we have a significant summed owed to us that will be paid back over the next year, and we want to know the outstanding balance, plus we don't want to record the money coming in as income - how should we set this up? Thanks

Comments

  • sarahspanglessarahspangles Posts: 171Member
    What I would do is make a new Savings Account, one that is on-budget.  The starting balance is the amount you are owed. That is categorised as "Available this month" and then the same amount is budgeted out as Savings, that month (or whatever you want to call it).  

    When you are paid back some of the loan, you simply transfer it from the Savings Account to the Account into which you pay the money.  It doesn't need a category because it's not income, it's just being moved between two on-budget accounts.  The balance in the Savings Account will be the amount outstanding.  The balance in your budget for "Savings" won't change, or need adjusting, because the amount just rolls forward from month to month.  YNAB's budget doesn't care where you are storing it.

    I know you don't want to categorise it as income but when you start using YNAB all the money pots that come into your budget are actually accumulated income from before YNAB - the trick is to assign those dollars to jobs quickly, and then budget within your monthly income.

    If you have already earmarked the money for a job when it's paid back - say "Car Savings" or "New Kitchen Savings" then you can budget the money as that from the beginning.

  • WateryTartWateryTart Posts: 1,189Member
    I think I would create a new off-budget account called "Money Owed Us" (or whatever), with the starting balance being a negative number, whatever is owed to you.  Then as you receive payments, enter that as income to the off-budget account.  This will keep it out of your budget and you will be able to see the remaining amount owed on the account.
  • SarahUKSarahUK Posts: 36Member
    I think I would create a new off-budget account called "Money Owed Us" (or whatever), with the starting balance being a negative number, whatever is owed to you.  Then as you receive payments, enter that as income to the off-budget account.  This will keep it out of your budget and you will be able to see the remaining amount owed on the account.
    i am doing this at the minute as my sister owes me money.
  • KESKES Posts: 864Member
    I agree with WateryTart. This will not affect your budget, but it will affect your net worth report.
  • wedjan245wedjan245 Posts: 1,049Member
    KES is right. This will affect your net worth report.

    To best describe the reality, money owed to you is like your money in a "CD". You need an off-budget account to account for it. When the money is paid back, lump sum or small payments, you move the money from this "CD" to some other places, on or another off-budget accounts.

    If you move the pay back money to on-budget account, it does become budgetable.  You have a choice to record it either as income, or directly to a category, such as emergency fund.
  • kcastlekcastle Posts: 13Member
    We have a budget category called "Reimbursable." When we have a reimbursable expense we budget it as such, and when we receive payment we assign the "income" to that budget category, which zeros out the category balance. To do this, you have to have the budget subtract from the next month's category balance, NOT from your "available to budget."
    akip
  • KleonikeKleonike Posts: 946Member, Beta Tester
    We use the approach described by @kcastle for reimbursables. It keeps the amount owed visible in the budget until we receive it and doesn't mess up our reports.
  • rdcoy61rdcoy61 Posts: 19Member
    +1 for the approach used by @kcastle & @Kleonike ... we have used the same approach the past 2 months with no problems.
  • bgiles117bgiles117 Posts: 520Member
    "I think I would create a new off-budget account called "Money Owed Us" (or whatever), with the starting balance being a negative number, whatever is owed to you." = Watery Tart

    I agree with Watery-Tart
  • wedjan245wedjan245 Posts: 1,049Member
    edited June 2013
    Lending is simply the opposite of borrowing.

    Create an off-budget account "Money Owed Us" with positive balance. This is your money, and part of your net worth! It's just out of scope of budget for now. Only money you owe starts from a negative balance.

    When paid back, move corresponding amount from "Money Owed Us" to a budget account and categorize in a a category. This transfer keeps your net worth the same as it is just moving money from one location to another.

    Post edited by wedjan245 on
Sign In or Register to comment.