I'm lost on this too. Prior to using YNAB 3, I apparently had $838.23 on two different credit cards. So when I created the credit cards in YNAB 3, the starting balances were entered, uncategorized as $616.97 and $$221.26. Since then, all transactions on the CC's were deducted from categories, then paid for, via a Transfer, every month.
I pull up my budget in YNAB 4 and I'm $838.23 overbudgeted for June. Going back and categorizing them does nothing to get rid of the overbudgeted amount. I don't have a 'Pre-YNAB Debt' category, tried creating one but it won't let you name it that. Thought that maybe if it was categorized as that, it would treat it differently.
If I delete those starting balances, my budget normalizes but then I show a credit in the Credit Card accounts, which throws them off. I tried doing a 'Fresh Start' but since I have one credit card with a balance, which has been deducted from categories, YNAB 4 then treats that as 'Pre-YNAB Debt' and puts it in the budget as that, as if it's really pre ynab debt.
I thought about starting a new budget file but I want my YNAB history without having to pull up my old YNAB 3 file if I need to reference something, not to mention the finagling(sp) that I'll have to do to handle the credit card with a balance.
I've read some of the other posts where someone found a hidden category but that's not my issue here. Any suggestions? My YNAB 3 account matches to the penny what my bank has (excluding uncleared transactions).