src/components/budget/BudgetTable.tsx

@@ -150,7 +150,7 @@ export default function BudgetTable({ rows, onUpdatePlanned, onSplitEvenly }: Bu
       monthTotals[m] += row.months[m] * sign;
     }
     annualTotal += row.annual * sign;
-    prevYearTotal += row.previousYearTotal * sign;
+    prevYearTotal += row.previousYearTotal; // actuals are already signed in the DB
   }
 
   const totalCols = 15; // category + prev year + annual + 12 months
@@ -197,7 +197,7 @@ export default function BudgetTable({ rows, onUpdatePlanned, onSplitEvenly }: Bu
             </div>
           </td>
           <td className={`py-2 px-2 text-right text-xs ${isIntermediateParent ? "font-medium" : "font-semibold"} text-[var(--muted-foreground)]`}>
-            {formatSigned(row.previousYearTotal * sign)}
+            {formatSigned(row.previousYearTotal)}
           </td>
           <td className={`py-2 px-2 text-right text-xs ${isIntermediateParent ? "font-medium" : "font-semibold"}`}>
             {formatSigned(row.annual * sign)}
@@ -230,7 +230,7 @@ export default function BudgetTable({ rows, onUpdatePlanned, onSplitEvenly }: Bu
         {/* Previous year total — read-only */}
         <td className="py-2 px-2 text-right text-[var(--muted-foreground)]">
           <span className="text-xs px-1 py-0.5">
-            {formatSigned(row.previousYearTotal * sign)}
+            {formatSigned(row.previousYearTotal)}
           </span>
         </td>
         {/* Annual total — editable */}
@@ -340,7 +340,7 @@ export default function BudgetTable({ rows, onUpdatePlanned, onSplitEvenly }: Bu
                 sectionMonthTotals[m] += row.months[m] * sign;
               }
               sectionAnnualTotal += row.annual * sign;
-              sectionPrevYearTotal += row.previousYearTotal * sign;
+              sectionPrevYearTotal += row.previousYearTotal; // actuals are already signed in the DB
             }
             return (
               <Fragment key={type}>

src/hooks/useBudget.test.ts

@@ -1,35 +1,23 @@
 import { describe, it, expect } from "vitest";
+import { buildPrevYearTotalMap } from "./useBudget";
 
 /**
  * Unit tests for the previous-year actuals normalization logic used in useBudget.
  *
- * Transaction amounts in the database use signed values (expenses are negative).
- * Budget entries are always stored as positive values, with sign applied at display time.
- * When building the previousYearTotal map from raw actuals, we must normalize with
- * Math.abs() to match the budget convention. Without this, expenses would show
- * inverted signs (negative × -1 = positive instead of positive × -1 = negative).
+ * Transaction amounts in the database use signed values (expenses are negative,
+ * income is positive). The buildPrevYearTotalMap function preserves these signs
+ * as-is, because the budget display layer does NOT apply a sign multiplier to
+ * previous year actuals (unlike planned budget amounts).
  */
 
-describe("previous year actuals normalization", () => {
-  // Simulates the normalization logic from useBudget.ts
-  function buildPrevYearTotalMap(
-    actuals: Array<{ category_id: number | null; actual: number }>
-  ): Map<number, number> {
-    const prevYearTotalMap = new Map<number, number>();
-    for (const a of actuals) {
-      if (a.category_id != null)
-        prevYearTotalMap.set(a.category_id, Math.abs(a.actual));
-    }
-    return prevYearTotalMap;
-  }
-
-  it("should store absolute values for expense actuals (negative in DB)", () => {
+describe("buildPrevYearTotalMap", () => {
+  it("should preserve negative sign for expense actuals", () => {
     const actuals = [{ category_id: 1, actual: -500 }]; // expense: negative in DB
     const map = buildPrevYearTotalMap(actuals);
-    expect(map.get(1)).toBe(500);
+    expect(map.get(1)).toBe(-500);
   });
 
-  it("should store absolute values for income actuals (positive in DB)", () => {
+  it("should preserve positive sign for income actuals", () => {
     const actuals = [{ category_id: 2, actual: 3000 }]; // income: positive in DB
     const map = buildPrevYearTotalMap(actuals);
     expect(map.get(2)).toBe(3000);
@@ -47,16 +35,16 @@ describe("previous year actuals normalization", () => {
     expect(map.get(3)).toBe(0);
   });
 
-  it("should display correctly with sign multiplier applied", () => {
-    // Simulate the display logic: previousYearTotal * sign
-    const signFor = (type: string) => (type === "expense" ? -1 : 1);
-
-    // Expense category: actual was -500 in DB → normalized to 500 → displayed as 500 * -1 = -500
-    const expenseActual = Math.abs(-500);
-    expect(expenseActual * signFor("expense")).toBe(-500);
-
-    // Income category: actual was 3000 in DB → normalized to 3000 → displayed as 3000 * 1 = 3000
-    const incomeActual = Math.abs(3000);
-    expect(incomeActual * signFor("income")).toBe(3000);
+  it("should handle multiple categories", () => {
+    const actuals = [
+      { category_id: 1, actual: -200 },
+      { category_id: 2, actual: 1500 },
+      { category_id: 3, actual: -75.5 },
+    ];
+    const map = buildPrevYearTotalMap(actuals);
+    expect(map.size).toBe(3);
+    expect(map.get(1)).toBe(-200);
+    expect(map.get(2)).toBe(1500);
+    expect(map.get(3)).toBe(-75.5);
   });
 });

src/hooks/useBudget.ts

@@ -63,6 +63,21 @@ function reducer(state: BudgetState, action: BudgetAction): BudgetState {
 
 const TYPE_ORDER: Record<string, number> = { expense: 0, income: 1, transfer: 2 };
 
+/**
+ * Build a map of category_id -> annual actual total from raw actuals.
+ * Transaction amounts are already signed (expenses negative, income positive),
+ * so they are stored as-is without normalization.
+ */
+export function buildPrevYearTotalMap(
+  actuals: Array<{ category_id: number | null; actual: number }>
+): Map<number, number> {
+  const prevYearTotalMap = new Map<number, number>();
+  for (const a of actuals) {
+    if (a.category_id != null) prevYearTotalMap.set(a.category_id, a.actual);
+  }
+  return prevYearTotalMap;
+}
+
 export function useBudget() {
   const [state, dispatch] = useReducer(reducer, undefined, initialState);
   const fetchIdRef = useRef(0);
@@ -90,12 +105,7 @@ export function useBudget() {
       }
 
       // Build a map for previous year actuals: categoryId -> annual actual total
-      // Use Math.abs because transaction amounts are stored with sign (expenses negative),
-      // but budget entries are always positive — the sign is applied at display time.
-      const prevYearTotalMap = new Map<number, number>();
-      for (const a of prevYearActuals) {
-        if (a.category_id != null) prevYearTotalMap.set(a.category_id, Math.abs(a.actual));
-      }
+      const prevYearTotalMap = buildPrevYearTotalMap(prevYearActuals);
 
       // Helper: build months array from entryMap
       const buildMonths = (catId: number) => {