I have a target for eating out set to £50. If myself and a friend went out to a restaurant and I paid for the bill in full, let’s suppose the bill was also £50, my target would be completely used up. Even if my friend paid me £25 under the ‘Eating Out’ category, my target would still show as being used up.
As a user, if my contact sends me money under a category, it increases the amount of money left (under Spending/Targets) to spend in that category. The outcome of this is to more accurately track spending and monitor targets.