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GolfNut72
Level 4

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 October 15, 2018

Best Answers
Rustler
Level 15

How to enter a rebate from american express cash back program

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

6 Comments
Rustler
Level 15

How to enter a rebate from american express cash back program

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

LorraineC1
Level 1

How to enter a rebate from american express cash back program

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.
Rustler
Level 15

How to enter a rebate from american express cash back program

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

How to enter a rebate from american express cash back program

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?

ThanksInAdvance
Level 2

How to enter a rebate from american express cash back program

@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!

sychan
Level 3

How to enter a rebate from american express cash back program

@Rustler 

We have a company credit card.

I would like to clarify how to record the credit card cash rebate.

I created an account "Other Income" for this purpose.

For the Credit Card Credit entry, I am not sure what to put under Payee Name.

 

Any further entries are required to complete the transaction? Apart from settling the Credit Card outstanding balance (transfer from bank) when it's due.

 

Thank you so much for your advice.

SY

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