Three-part transaction?

myllanac

I spent $75 on my credit card. I transferred (in real life) $75 from savings directly to the credit card (e.g. payment). It is two transactions in Simplifi: charge to credit card (with proper category), and hidden/ignored internal transfer from savings to credit. Am I correct to make the original transaction also hidden? The credit ledger has one unhidden charge and one hidden credit. 

DannyB

Hi @myllanac

It's not really a three-part transaction.  You have two separate things going on here.

On the one hand, you have the actual expense - your $75 purchase that you have categorized and Simplifi has accounted for that purchase in your spending plan.

On the other hand, you have a separate action going on "behind the scenes" which is moving money from your savings account to cover the expense charged to you cc.  This transaction which shows up as a debit in your savings account and a credit in your cc account is hidden because it isn't an actual expense - it's simply moving money around between "cash" accounts.

The way I look at it is this: I treat me cc's as "checking accounts" and my cc payments as simply transferring money between accounts - in this case from an actual checking or savings account to the cc account. It's the same as if I transferred money from a savings account to a checking account to cover an expenditure from my checking account that would overdraw that account if money isn't added.

So, no, don't hide the actual transaction.

Hope that helps!