Withdrawals lower the balance on my credit card account?

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4 posts
Withdrawals lower the balance on my credit card account?

MisterEck
New MMEX User

Posts: 2
Joined: Thu Jan 26, 2017 7:40 am
So I'm trying to transition to MMEx from another software. And I've run into my first roadblock. My Credit card transactions seem to work backwards, but it's possible that I don't understand how it should work.
I start by importing some transactions from my bank via the QIF import option. but each "spending transaction" lowers the balance on my credit card rather than raising it. Like this:

Starting Balance: $1000

Transaction: Withdrawal(spending): $100.00   

Balance: $900

Transaction: Deposit(a payment): $50

Balance: $950

This is what I'm seeing on MMEx, but shouldn't this be the opposite? Shouldn't spending (a withdrawal) increase the balance on a credit card? I'm sure that I'm just not understanding how it's supposed to work. Could someone point me in the right direction?

Thanks
Re: Withdrawals lower the balance on my credit card account?
User avatar
GabrieleV
MMEX Developer

Posts: 259
Joined: Wed Apr 09, 2014 1:45 pm
Location: Italy
Hi, in MMEX a withdrawal it's when money goes out from your account (expense) and balance go down, instead a deposit it's when money goes in into your account (income) and balance raises.
Re: Withdrawals lower the balance on my credit card account?

thiruma71
New MMEX User

Posts: 3
Joined: Fri Apr 03, 2009 5:22 am
MisterEck wrote:So I'm trying to transition to MMEx from another software. And I've run into my first roadblock. My Credit card transactions seem to work backwards, but it's possible that I don't understand how it should work.
I start by importing some transactions from my bank via the QIF import option. but each "spending transaction" lowers the balance on my credit card rather than raising it. Like this:

Starting Balance: $1000

Transaction: Withdrawal(spending): $100.00   

Balance: $900

Transaction: Deposit(a payment): $50

Balance: $950

This is what I'm seeing on MMEx, but shouldn't this be the opposite? Shouldn't spending (a withdrawal) increase the balance on a credit card? I'm sure that I'm just not understanding how it's supposed to work. Could someone point me in the right direction?

Thanks

In fact, the starting balance should have been taken as $ -1000. The balance would then be updated to $ - 1100 on withdrawal

From an account perspective, assets are debited (Positive balance) and liabilities are credited (Negative balance).

However, for the bank the signs would be reverse in their account books (Because amount outstanding in your credit card is an asset for them).
Re: Withdrawals lower the balance on my credit card account?

MisterEck
New MMEX User

Posts: 2
Joined: Thu Jan 26, 2017 7:40 am
Thank you both for your help. I understand now, I don't know why that didn't occur to me. :oops:

Sorry it took me so long to respond, I got busy and forgot about switching. I'll give MMEx another shot now.
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