Adding a credit or debit to account

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  • Updated 8 months ago
How do you treat credits/debits to your account? Like getting credit for a return. I wanted to keep the balance correct at all times. It doesn't go into a specific "envelope" 
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Carol

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Posted 8 months ago

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Alex Park, Official Rep

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Hi Carol,

You can add a Credit to an Account in Goodbudget by entering an Expense with a negative Amount (on the Web) or by adding a transaction and changing the type of transaction from Expense to Credit (on mobile). Here's a guide in our Help Center for more details.

However, adding a Credit in this way will require you to also apply that credit to the balance of one of your Envelopes. In the case of a refund, you can simply choose the Envelope from which you originally recorded the Expense. If you'd prefer that money to stay Unallocated, you can either apply the Credit to an Envelope and use an Envelope Transfer to move the money to Unallocated, or you can add the money as an Income. Note that adding it as an Income will affect other parts of your household such as your Income vs Spending Report.

Hope that helps!
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Wayne Woodbury

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Carol, if I can give an accounting tip to add to what Alex said, resist the temptation to record a refund or rebate as income.  Recording an expense with a negative value allows you to assign the amount to the correct envelope or split it between envelopes if needed, but more importantly keeps your income and expenses accurate.  If you ever use reports to see how much you spend in a particular category, recording those transactions improperly will skew your reports and not give you an accurate view of your income and expenses. 

I also would not record the expense in the wrong envelope.  For example, if you return a pair of jeans, don't apply the refund to your gasoline envelope because you are running low on gas money.  Apply it to your clothing envelope and then do an envelope transfer or adjust your latest Fill if you want to move money to another envelope.  Again, this helps keep your reports accurate.

Wayne
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Carol

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Thank you, just started and trying to get the hang of it.