Why do I have a positive amount in the paid out column on the periodic financial report?

Why is my periodic financial report showing a negative amount on an expense account line?

Why is the amount on an expense account line being added to the budget?

While the report may look strange, what you are seeing on the report is most likely correct. Expense Credit (EC) deposits are treated differently from normal deposits. One purpose of the EC deposit is to prevent the deposit from showing as income. The other purpose of an EC deposit is to wash out an expense. So, EC deposits are not posted to the Income Column like normal deposits and instead are posted as a credit to some prior or future expense.

When an expense credit deposit is made, the deposit will be credited to the paid out column in the internal accounts and show as a reduction in your expense accounts. If the expense has not yet been paid, then the paid out column may show a positive amount. Your reports may also show a negative amount in the expense accounts.

When an expense is incurred, the amount is subtracted from the budget. Since an Expense Credit deposit is a credit and not a debit, the amount is added to the budget. This results in an increase in the Balance column.

Once the expense has been paid, your report will show a net result of zero. Your balance will be back to what it should be and the amount showed as paid will be either $0.00 or some positive amount. The expense is also subtracted from the paid out column resulting in a net expense of zero, which is the desired result for In/Out transactions.

NOTE: The negative amount will effect your total expenses. It will reduce your totals by the same amount. If this transaction occurs at the beginning of the year, you might find totals that are negative as well. Again, once the expense has been paid, your reports should not show the negative amounts.