Hello,
I am running a business promotion that offers cashback for purchasing a specific service. This is defined and allowable in UK VAT legislation - VAT Notice 700/7, section 10.1 https://www.gov.uk/guidance/business-promotions-and-vat-notice-7007.
How do I account for the cashback to the customer after they have paid their invoice? Customer payment methods could be card/cash/cheque/bank transfer etc. and cashback payments will occur separate to the supply of services, so a simple discount will not work for 'applying' the cashback.
Hope you can help.
Solved! Go to Solution.
Welcome to our forum, ,
You can use a service item to account for a customer cashback. To do that, follow the steps below:
Now, you can assign this item on invoices by adding a negative amount to show a reduction. See this:
Now, if you are the one who received a cash back or a refund for purchases made on your credit card, use the steps below:
What you should do:
I'll be adding our Resource Guide here to help you with your tasks in QBO: QuickBooks Tutorials
If there are other things you want to ask or need help with, let me know in the comment below. I'll be right here to help you any time. Have a good one!
Welcome to our forum, ,
You can use a service item to account for a customer cashback. To do that, follow the steps below:
Now, you can assign this item on invoices by adding a negative amount to show a reduction. See this:
Now, if you are the one who received a cash back or a refund for purchases made on your credit card, use the steps below:
What you should do:
I'll be adding our Resource Guide here to help you with your tasks in QBO: QuickBooks Tutorials
If there are other things you want to ask or need help with, let me know in the comment below. I'll be right here to help you any time. Have a good one!
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.