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Level 2

Cash Back in Petro Card

We use petro cards for fuel. The amount is transferred from the bank to the Petro Card which is also treated as a bank. Whenever we fill fuel, we pay from the Petro Card Bank. Whenever we fill fuel we get a cash back also. How do i record it.

3 Comments
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Level 10

Cash Back in Petro Card

@EdnaBen

 

I'd suggest to record it as Cash Back Income (or Other Income).
If needed, you can add a New account.


Left dashboard > Accounting > Chart of Accounts > New > Account Type = Income > Detail Type = Service/Fee Income > Name = Cash Back Income > Save.

 

Hope this helps!

Highlighted
Level 2

Cash Back in Petro Card

Sorry i am unable to understand.  

1. Transfer Money from Bank to Petro Card (Bank) 200

2. Fuel Expense = 100

3. Cash Back = 10

4. Petro Card Balance = 110

If i create a new  income account won't it come under taxable thing.  How do i record it so that my Petro Card Bank balance shows the actual amount in my PetroCard.

Thanks in advance.

Highlighted
Level 10

Cash Back in Petro Card

@EdnaBen

 

Just like you have distribution account for expenses, you also have distribution account for cash back item which is normally categorized as business income. So accounting $10 as Cash Back Income will add to your Fuel Card account.
In your Petro Fuel Debit Bank account with the following three transactions, you should have $110 ending balance.
($200 transfer payment - $100 expense + $10 income = $110 balance).

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