Cash Reimbursement Question

My daughter reimbursed me in cash for a costume I purchased for her. How do I track the expense from my checking account using the envelopes?

I am not depositing the money she gave me into my checking account.

Also from the money she gave me, I did use $10 to buy them all ice cream today.

Confused on how to manage this!

Reimbursement can be tricky. Do you have a Cash envelope or account for your pocket money? If so, I would record your purchase of the costume as a transfer from your Checking account to the cash account, since you essentially just “withdrew cash”. You’ll need to deduct the money from Checking and that may be a good way to do so while still having the money to spend.
To record the ice cream, just record a transaction from your cash envelope.
Hope that helps!

Okay so when I do that it makes my unallocated account negative by that amount.

What I did was this:

  1. Create cash account. Put it to $0.00
  2. Created a transfer from checking to cash account for the purchase.

Cash account went up by $45
Unallocated went into the red by $45.

I feel like I am missing something because I am not actually accounting for the physical cash I have on hand.

Should I do this as envelopes instead?

Thanks for your help!

Hmmm…just moving money between accounts shouldn’t change your Unallocated balance at all, since it represents the aggregate amount in all your accounts. Did you already enter the costume purchase as a transaction? If so, then you’ve accounted for it twice. I would replace the “purchase” with the transfer and that should clear everything up. If it was part of a larger purchase (eg it accounted for $20 of a $100 shopping trip) you could enter the $20 as a credit against that envelope like you would for a return. That will increase your checking account by $20 which would also fix your Unallocated balance.
Personally, I have both a Cash account and a Petty Cash envelope so I can manage “pocket money”. I don’t actually track cash spending (I just make single aggregate transactions to keep things balanced) but that way I can account for cash withdrawals and such.
Does that help?

This worked thank you! My unallocated funds weren’t right for a different reason. Thank you for your help!