Paying and Adding amount to an envelope

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  • Updated 7 months ago
I am setting up a budget for my (adult) daughter who lives with a roommate.  I think I am on the right track here but I want to be sure before I get too deep in the envelopes.  My daughter pays the rent and utilities in full, and then her roommate e-transfers the money to her.  The rent is $1200 per month, but I have her Rent Envelope set up for only $600 (similarly for the utilities envelopes). On the first of the month, I will have GB show rent payment of $1200, and (hopefully) on the same or next day, an Income transaction for $600 from the roommate. From there, I can show an Income transaction of $600 and transfer it to the Rent envelope, correct?  And I guess I can set this all up to be scheduled, so the only thing to do is confirm the roommate's share was paid and deposited in my daughter's account?  Any suggestions on how else, or what else I should do to streamline this process?

Thanks.
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Russell Allan

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Posted 8 months ago

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Alex Park, Official Rep

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Hi Russell,

The three-step process you're suggesting ($1200 Expense, $600 Income, $600 Transfer to Rent Envelope) would definitely work and allow for the correct accounting. But as an alternative, what I would suggest is using a Credit transaction to represent the $600 she receives from her roommate rather than the combination of Income & Transfer.

This has a few benefits. First, it's a single step, rather than two. Additionally, it doesn't get recorded as an Income, which can be useful to make a distinction between money received as income and money received as a credit/reimbursement.

Also, scheduling the two transactions ($1200 Expense and $600 Credit) monthly would make the process completely automated (the recording in Goodbudget part, not the actual receiving payment from the roommate part, of course), so this could further increase the accounting ease.

Hope that helps!