In Monarch, we have a "Transfer" category and a "Credit Card Payment" category. Depending on your situation you might use one, the other, or both.
- Transfer transactions are ignored from your Budget and Cash Flow.
- Credit Card Payment transactions are counted as Expenses in your Budget and Cash Flow.
Using the Transfer category works well when both of your accounts are connected to Monarch. For example, if you have your credit card and your checking account connected to Monarch. When you pay the credit card bill out of your checking account, you'll see two transactions in Monarch in each of those accounts. If they are categorized as "Transfers" they will cancel each other out.
The reason for this method is that we have already tracked our expenses in our budget, item by item. If we also budget for the card payment, then it essentially duplicates the expenses and we don't want this.