Offsetting income for a category against expenses for that category

Hallo 22seven,

is it possible to have certain types of income offset against the expense for a given category? I'm thinking of things like medical expense, where one typically might claim back a certain amount from the medical aid. So you might spend R1000 at the doctor, but get back R800 from medical aid, so that the actual expense is only R200.

At the moment I just categorise these non-salary incomes into the correct category, but it might be useful to see the actual amount that you spent. It does get complicated though if the expense and income happens in different months though.

Anyway - a suggestion, let me know what you think.

regards
corne

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  • Hey Corne

    Thanks for the suggestion. It does become difficult as the expense and refund often happens in different months. We also want to show you an actual account of your cash flow, so if money leaves your account, it affects what you have left to spend for that month - and vice versa.

    There is one possible workaround. In your example, you could split the original transaction in two, your final portion of R200 and the R800 refund you received. Categorise the R200 correctly and then change the spending group on the R800 portion to 'transfer', which will hide that portion. Then also hide the actual refund.

    That way, you're just left with the R200 you "actually" spent.

    Would that work for you?

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  • thanks for the response - I understand the approach, but would consider it too much effort :). You're also correct ito showing the actual cashflow. Think I'll stick with just categorising the income appropriately.

    cheers
    corne

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  • Hey Corne

    Sure thing. Please keep the suggestions coming :)

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  • Whilst I understand the cashflow thinking I would find this incredibly useful in a couple of categories. I have income for a small 'business' of sorts and although I'm allocating expenses and income to the right account, it's impossible to see if it's balancing or doing okay as these are in different spending areas. I'm really struggling to understand the transfer concept correctly, too. The other area which is a problem for me is that I do some spending on behalf of our church and then claim those expenses back. I'm sure there would be others who do this or do it on behalf of a mercy project or a charity. Again, it's really difficult to track the way that the accounts are currently set up. Even if a split screen idea was built in, perhaps?

    As I'm in software support and I'm part of the development team, I do understand that this is sort of another layer to consider, but it's perhaps a different way of thinking about transactional accounts. I also realise that it's critical to develop for the 75% of mainline users and not the 3% power users but I do wonder if Corné and I might represent a higher percentage within the 75% that 'see' in a different way.

    I love 22seven as it's given me - an I HATE numbers person - a much better grip on my finances - but this particular area is a constant sticking point.

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  • Hi Louise,

    Thanks so much for getting in touch, and for the kind words.

    Currently, the best way to handle these situations, is to mark the original expense transactions as a Transfer, and then when the money is claimed back, you can mark those income transactions as a Transfer also. This will essentially cancel the amounts out ensuring that your totals aren't skewed.

    We realise this isn't the best, or most obvious way, to handle these types of scenarios, and we're having internal discussions on developing smarters ways of handling this behaviour :)

    Thanks again for sharing. I'll be happy to pass this on to our Product team.

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