Make your Rewards account either Other Income or Other Expense.
As Other Income, it is not part of Gross Receipts.
As Other Expense, it will run negative because it Reduces the total expenses you can report.
And either way, it falls to the bottom of the P&L.
You use the Card Provider's name as payee on the payment transaction. You can use that same name on the Credit.
Same difference: Name for this transaction. They are the company that gave you this credit. Payee = Purchased From, for cash and checks, right?
Welcome to the Community. I'm here to assist you with any questions you may have concerning cash back rewards in QuickBooks Desktop.
The process of recording cash back rewards are almost the same with QuickBooks Online. You can track the points until you use them.
These rewards are income to the business either you apply them as a credit reducing the balance or acquire a check and create a deposit.
You can create an Other Income account by following these steps:
Please know I'm always available anytime you need assistance concerning the process. The Community will be sure to get back to you.
LLC owner in Arizona here. I've had my company taxes prepared by a professional CPA firm here in Arizona for a decade, and cash back rewards for cards are considered as rebates by the IRS. We've been filing as such for years, no problems. Please contact a CPA or other tax professional in your jurisdiction, your mileage may vary, but I thought my experience could be valuable here.
It's nice to see you here in the Community, @sneligan.
You can enter the cashback credit as an income to your company. I can guide you through the steps.
As mentioned above, you can continue to track your cashback rewards until you utilize them.
You'll need to create an income account for your points. Here's how:
Once done, you can now record the cashback credit. You can follow the steps below:
You can always get back to me if you have any other questions or concerns. I'll only be a post away.
I logged my cash back redemption to my CC account as a postive add under "Uncategorized Expenses"
This balanced my books without the redemption being counted as income - because to me it is not income and I should not be taxed on cash back rewards...right or wrong, that's how I solved it....