Still confused by how to record credit transactions

Sorry, I know there are numerous threads on this but maybe there was a software update or something because it seems different now that I’m trying to do it. I used GB several years ago and they must have changed things around, it’s not as easy as it used to be.

I have a balance on my CC. I only use my CC for gas currently because I get Cash Back Rewards for fuel purchases.

I created a Gas envelope. Here’s what I’m trying to do (this used to work when I used GB more regularly a few years ago, I’ve only recently started using it again last month):

Add transaction > Expense/Credit >

Payee: Shell
Amount: $35
Envelope: Gas
Account: Bank Credit Card

That used to work. Then at the end of the month I’d just make an Account Transfer from Debit to Credit, easy.

Now when I try and do this, I get an automated prompt saying “Recording a debt transaction? Use the debt tab”.

Ok. So I go to the debt tab.

Add transaction > Debt transaction

Name: Shell
Amount: $35
Type: Add interest, fee, or new charge
Debt: Bank CC

Ok, that’s fine but now I can’t take the money out of my Gas envelope.

In real life, I’ll make an account transfer from my Debit Account over to my CC Account once a month.

However, in GB, I have to create some sort of Debt Payment envelope and have a budgeted amount each month and then…? I don’t know what. Use the Debt Payment envelope to…?

This isn’t how I used to do it and this new way is confusing to me.

On a separate but related note, how does one record Cash Back Rewards? I got $18 in cash back rewards deposited into my CC account, but you can’t record income on a Credit Card. You also can’t record a Credit on a CC account. Anytime you try and do anything with your Credit Card, it makes you go to the Debt Transaction tab. The only way to record any sort of credit on your CC is via payment, which you have to take from another account or envelope.

Some guidance would be helpful, thank you!

In order to help people eliminate debt, Goodbudget has made the credit card function more robust—but that can lead to the kind of issues you’re seeing, where it’s difficult to record transactions you intend to pay off. The idea is that you’d stop using cards with a balance and focus only on the payoff, but there are cases like yours where it may make sense to use them judiciously in the interim.
I don’t know if it’s the best way, but when I was carrying a balance while using my card for budgeted purchases, I set up two accounts. One was Citibank-Monthly (new charges paid off every month) and one was Citibank-Extended (the ongoing balance from a promotional offer). You’ll be able to record a credit on the “paid off every month” account. That required a little extra math when it was time to reconcile but it allowed me to keep my budget up to date and use my monthly envelopes as intended.
(I’m happy to walk through my process if anyone is interested.)
Hope that helps!

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Thanks for posting, Heathman-Spencer!

It sounds like you’re generally paying off the credit card every month. And, in that case, you’d track that card as a Credit Card Account in Goodbudget, or what Tiffany was calling a ‘pay off in full’ account. We generally recommend reserving the Debt Account feature for cards or loans that you’re no longer using and just working to pay off, which it doesn’t sound like is the case for you.

By using a regular Credit Card Account, you’ll be able to record your Shell transaction and assign it to your Gas Envelope and Credit Card Account, as you normally do. Then, when it comes time to make the card’s monthly payment, you’ll do that by recording an Account Transfer from your Checking Account to your CC Account. It sounds like that’s the flow you were used to doing previously.

Lastly, in regards to your cashback, assuming that you’re tracking that credit card as a Credit Card Account in GB (and not a Debt Account), you will be able to record your rewards as an Income to that Account.

If your credit card is still listed as a Debt Account, here’s how to convert it to a Credit Card Account:

  • Click on Add/Edit on the Accounts tab
  • Click on Edit next to your Debt Account
  • Use the ‘working to pay off’ dropdown to select the ‘pay off in full’ option and then save your changes.

I hope that helps!

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Yes, thank you! This is exactly what I needed to know. Now I can enter these transactions the way I used to. Thanks again!

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I just posted the exact same question. I could not find a “search” box.

OK, GB is not for me then. Thx