# Reimbursement Approach Two: Overspend Temporarily

> Learn about our reimbursement approach two, where you overspend temporarily while you wait to be reimbursed.

Source: https://support.ynab.com/en_us/reimbursement-approach-two-rJc7MwFvex

Last updated: 2026-07-02T17:33:59.728Z

### **This approach is only recommended when the reimbursable expense occurred on a credit card.**

Because money hasn't been immediately removed from your bank, you can let that credit overspending sit for a short time while you wait for your friend (or sister or boss) to reimburse you. Keep in mind your Credit Card Payment category will be short until you get that reimbursement.

1.  Record the expense as usual.
    
    1.  **If you receive the reimbursement in the same month as the expense and you haven't made a credit card payment since recording the expense**, categorize the deposit with the same category as the original expense. This will offset that expense, and money will be moved to your Credit Card Payment Category to be set aside for payment.
        
    2.  **If you receive the reimbursement in a future month or after you've paid off your card**, the credit overspending will have been absorbed as debt into your credit card balance. Categorize the deposit back to the original spending category, and then move the money to your Credit Card Payment Category.
        

We share some more details and advice in [Intentional Credit Card Overspending: An Overview](https://support.ynab.com/en_us/intentional-credit-card-overspending-an-overview-HJrSQbOC9).

#### Why doesn't this method work with cash overspending (from checking or savings accounts)?

YNAB doesn't allow negative amounts to [rollover into a new month](https://support.ynab.com/en_us/when-the-month-rolls-over-a-guide-rkyyd6qC9). If you overspend in a category with a cash account, YNAB holds the plan accountable. Cash overspending reduces Ready to Assign in the following month. If you're waiting on a reimbursement for a non-credit card account, assign money up front. You'll then use a method for [organizing and tracking reimbursements](https://support.ynab.com/en_us/organizing-and-tracking-reimbursements-S1K78wYwgx).

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## Using a Reimbursement Category

In most cases, a reimbursable expense (and its matching reimbursement) can be categorized to a regular spending category. If you prefer to **separate** **out** your reimbursable expenses, you can create and use a reimbursement category to keep track of them.

### How to Use a Reimbursement Category for Approach Two

1.  [Create a reimbursement category](https://support.ynab.com/en_us/adding-removing-and-customizing-categories-a-guide-HJFO5j909#new).                           
    
2.  Record the expense to your reimbursement category.
    
3.  When you receive the reimbursement, categorize it to the reimbursement category to offset the purchase.
    
4.  Depending on **when** you received the reimbursement, one of two scenarios will occur:
    
    1.  If you receive the reimbursement in the same month as the expense and you haven't made a credit card payment since recording the expense, the money will **automatically** move to your Credit Card Payment category to be set aside for payment. 
        
    2.  If the reimbursement did **not** come in the same month as the expense, you'll need to manually move money **from** the reimbursement category **to** the Credit Card Payment category to cover the credit overspending.
        

Remember: Once the month rolls over, **overspending does not move forward**. Cash overspending (red) is removed from the new month's Ready to Assign amount (which is why we always recommend using [reimbursement approach one](https://support.ynab.com/en_us/reimbursement-approach-one-rkF4ZvFwee) and assigning money upfront for the purchase or expense). Credit card overspending (yellow) is absorbed as debt on your card in the new month. This means you'll see a wider difference between the amount in your Credit Card Payment category's Available column and the actual balance on your card.

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⤴️ Back to main article: [Reimbursements in YNAB](https://support.ynab.com/en_us/reimbursements-in-ynab-H1W7ilhC5)