Expense when we are receiving split money from others

Paddy

I don't want to show a $600 charge on my credit card as a total expense in my monthly spending as the $600 is being split 4 ways. How do I handle the charge when it comes in to show that I am receiving $450 back from others?

Jim_Harman

Is this for example a meal with friends, where you charged the full amount on your card and received most of the money back in cash?

Let's say the Category you used was Meals. You still owe the $600 money back to the credit card company, so you should not reduce the amount of the charge.

If you deposit the cash in your checking account, you could assign the Meals Category to the deposit. The $450 will show up as a negative expense in the Meals category in any reports you run, leaving you with the correct net of a $150 expense.

Or if they reimbursed you via Venmo and the Venmo transactions appear in your bank account transactions, you would simply apply the Meals category to the Venmo transactions.

Or if you have set up a manual "Cash on hand" account to track your cash, you could enter the reimbursement as a deposit in that account.

volvogirl

Or you could set up an Accounts Receivable account. Then split the 600 credit card charge as 150 to the expense and 450 as a transfer to the A/R account. Then when someone reimburses you the deposit is a transfer to A/R to clear it.