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Tracking credit card payments
J
JasonR
September 22nd
We use our credit cards for day to day expenses and pay them off every two weeks the day before payday. In addition to using an electronic envelope system, this is a way to "prove" that we had in cash a matching amount for all credit card charges and we're never floating money. We just switched from another electronic envelope system to the MoneyWise Pro app with Connected accounts. This problem is probably just a one-time problem when someone is first getting set up. I understand for transfers (or even credit card payments) we can just have a "Transfer" envelope and track the outflow from our checking as a "Deposit" into that Transfer envelope and then the inflow into the credit card as a "Withdraw" from that Transfer envelope. This makes sense as there will be a matching dollar amount for both sides, typically 2 business days apart. However, in our case we set up the Connected accounts during the weekend while a payment was "in flight" so Moneywise didn't see the outflow from the Checking account, but now has seen the "Inflow" to the credit cards. How do we correct this? It seems like one way would be if we were allowed to manually edit the initial start amount of money from our Checking account and then we could create manual Outflow transactions; but I don't believe we have access to do that (and for good reason). Again, this is just a "startup" problem. If we didn't have any payments "in flight" it wouldn't have been an issue.
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J
JasonR

September 22nd

Ah hah, figured out a solution. So we have some offline cash accounts (wallets, cash in cars). I just used one of those cash accounts to "fix" this problem. To start with, I totaled the 3 credit card payments that went out last week. I then deleted one of our car-cash accounts (which had no transactions yet) and created it again. When I created it, I fudged the starting balance by the amount of the 3 total credit card payments. Then I created 3 withdraw transactions in that car-cash account, one for each amount of the 3 credit card payments, and assigned the Transfer envelope. Now when I assign the other side (the payment received at the credit cards) to the Transfer envelope, it balances out and keeps all the accounting figures happy. Part of the point is that MoneyWise didn't know about the money we had "in flight" when it was Connected to the accounts; so using an offline cash account with a fudged starting balance was a way to get that "in flight" money account for into the system. The other solution is to not connect two accounts until both sides of a transfer/payment have cleared.
R
Roy&Karen

September 28th

I have an envelope set up named credit cards. When a cc purchase is made- I transfer from the other envelopes to the credit card envelope. When the credit card is paid- which I generally do online- the $ are already in the envelope and the transaction is set to automatically take those payments out of the credit card envelope. I too, am paying the balances on our cards every two weeks. That keeps me from accidentally overspending. It takes some management, but it is worth it for the amount of statement credits I receive .
J
JasonR

September 30th

I believe I've found the only way to get things "clean" from an accounting point of view in Moneywise: Only add "daily use" credit card accounts when they have a $0 account balance. That will keep the special "Credit Card" balance matching a custom "Credit Card Payment" amount. So, we're pausing using the credit cards for 4 days, 3 days ago paying off all charges in full, and tonight they'll show a $0 balance. At that point, we'll figure out the best way to "Reset" things with Moneywise. Worst, worst case, we'll zero out/reset all info that Moneywise knows about our accounts (as if we were brand new) and restart fresh and put money back into Envelopes.
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