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Frequent Explorer **

How to enter a rebate from american express cash back program

I have a company credit card that receives a rebate/refund from American Express as part of their cash back program.

I have all of the credit card charges entered and the payments entered but I'm not sure how to enter the rebate in Quickbooks Online.  I know how this is done in QB Desktop, but not in QBO.


Thanks

Elliot

Solved
Best answer 10-15-2018

Accepted Solutions
Established Community Backer ***

If the rebate is cash/check, make a deposit to your bank,...

If the rebate is cash/check, make a deposit to your bank, and use an other income account, or I create an income account called rewards income, as the source (from) account for the deposit

if the rebate is a credit to the credit card, use menu plus>vendors>credit card credit and use the income account as the source of the credit

View solution in original post

5 Comments
Established Community Backer ***

If the rebate is cash/check, make a deposit to your bank,...

If the rebate is cash/check, make a deposit to your bank, and use an other income account, or I create an income account called rewards income, as the source (from) account for the deposit

if the rebate is a credit to the credit card, use menu plus>vendors>credit card credit and use the income account as the source of the credit

View solution in original post

Not applicable

Shouldn't we use a contra-expense account? This solution...

Shouldn't we use a contra-expense account? This solution overstates income and overstates expenses. In an ideal world, the credit card company would decrease the percentage of every individual credit card charge. I think it would make most sense to create an expense account which always runs negative.
Established Community Backer ***

you can do that there is absolutely no difference to the...

you can do that
there is absolutely no difference to the bottom line, a negative expense increases income so that is the same as just posting it to income
If is also bad form in accounting to have a negative expense
Anonymous
Not applicable

Re: you can do that there is absolutely no difference to the...

From other posts I have read, it seems as if cash back that accumulates from expenses incurred on your Business Credit Card are non-taxable. Please discuss/confirm this. If this is the case, I would assume a sub-account called Other Income - CC Cash Back should be created and payments deposited into your business bank account. Then, I would assume, the value of the CC Cash Back at end of year is deducted from taxable income?

Frequent Explorer *

Re: If the rebate is cash/check, make a deposit to your bank,...

@qbteachmt 

 

Hello, So I have the credit card account which ive been adding all of the charges, but this new statement has the cash rebate that is applied to the balance owed - could you clarify the steps i need to take in QB Desktop?  

 

Thanks!

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