How do I handle reimbursements?

If you are living paycheck to paycheck and cash flow is tight, the method below is not recommended.  You are essentially floating debt in a budget category, so this works best if you are flush with cash.  If you are not in a strong cash flow situation, you should budget for all reimbursed expenses with your money first, and then treat the reimbursement check as income.

Step 1: Enter an outflow for the expense, categorizing it as you see fit.

Example: Doctor Visit

Step 2: Move to the Budget.

Click on Budget in the sidebar to move to the Budget.

Step 3: Change the settings in the Category Balance column.

Because the reimbursement will not always happen in the same month as the outflow, you will want to change the overspending settings so that the negative Category balance only affects this Category and has no impact on the rest of your Budget.

Clicking on the red number in the Category Balance column brings up the overspending settings. Click on the red number and in the pop-up that appears select: “Subtract it from next month’s category balance.”

An arrow now appears next to the red number and points to the right. This indicates that the overspending is being subtracted from next month’s Category balance.

Step 4: Once you have been reimbursed, record an inflow to the Category that you used for the original outflow.

Select the account to which you will add the money.

Step 5: Enter the Date and Payee.

Click in the Date field to enter the date. Then, in the Payee field, enter the name of the person/place/company who paid you the money. (Or if you’ve used this Payee before, select it from the drop-down menu.)

Step 6: Categorize the reimbursement transaction to the same category as the original outflow.

Select the same category as the original outflow.

You want this inflow to go directly to the Category that is affected by the original expense, therefore you will NOT select one of the Income categories as you would if this were a paycheck or other type of income/payment.

Step 7: Enter the amount of the inflow.

In the Inflow field, enter the amount you received.

Step 8: See how the inflow affected your Budget.

The inflow has offset the original expense in the Category.