I'm trying to figure out the best way to handle the situation where I pay the full restaurant bill on my credit card and my friends give me cash. Any way I enter it, it would seem to screw up my budgeting/reporting.
I saw someone on here state that they used the REFUND function, but then I have an entry on my credit card that didn't really happen and he balance won't be right, until I make a payment to my credit card of the cash amount. Then, if I do that, I'll have an entry in one of my other accounts that won't make sense! The only solution seems to be to walk into a bank and put that cash down on my credit card account! Ugh... Am I being to anal retentive? Probably.
E.g. Bill is $130, my friends give me $100. I don't want my eating out budget to take a hit of $130. I also don't want the $100 to show up as "income" in my final reporting.
I think that I MAY have come up with something. I'm going to try it for a bit and see how it goes.
I've set up two more categories called, "Cash for Credit." One is an expense item and one is an income item. Then, I entered the restaurant bill as a split transaction, using the Cash for Credit expense for the money that the friends gave me ($100). Then I entered a Cash for Credit INCOME transaction for the $100 into my "Cash on Hand" account. I still have the issue of the $100 showing up as income, but I suppose I can exclude the category on any of my income reporting.
We'll see how it goes!
5. What's important then, is to set your Budget to monitor All accounts, not just credit account and a correct Dining Out category (but I think you already did that).
6. So after I refunded 70.00 to my Cash account, my Dining Out Budget will still show that I used only 30.00 for that Dinner.
So as the report will (but only in case you will be generating Categories report for ALL accounts). In other words if you generate Categories report for only Credit Account and only Dining Out category it will show you, that you used 100.00 on your Credit Card on that dinner with friends, which eventually is still correct in case you are generating a report just for your Credit Card payments..
I hope this was helpful.
This is genius, thanks.