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Electrician
Electrician
December 11, 2018
Solved

How do I enter a cash back credit?

  • December 11, 2018
  • 27 replies
  • 124 views

My company credit card has a cash back rewards program.  I just took that cash back and applied it to my account as a credit (lower my next CC bill).

How do I enter that cash back credit in Quickbooks?  

Best answer by Rustler

use enter CC charges, top left set to a credit, select an income account, I create one called rebate income, and enter the amount

27 replies

Rustler
RustlerAnswer
Level 15
December 11, 2018

use enter CC charges, top left set to a credit, select an income account, I create one called rebate income, and enter the amount

    Rustler
    Rustler
    Level 15
    December 11, 2018
    No it is not an expense.
    Technically it is a reduction of expense, each and every purchase you made that accumulated cash back reward points - Not only is that impossible to track, but it might also extend to previous fiscal years.

    The company got value, that is income
    qbteachmt
    qbteachmt
    Level 11
    December 11, 2018

    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.

      N
      ns12345
      January 18, 2020

      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....

      qbteachmt
      qbteachmt
      Level 11
      December 11, 2018

      You use the Card Provider's name as payee on the payment transaction. You can use that same name on the Credit.

      Electrician
      ElectricianAuthor
      December 11, 2018
      The field says Purchased From, not Payee.  That's why it seemed odd to put the CC company name.
      qbteachmt
      qbteachmt
      Level 11
      December 11, 2018

      Same difference: Name for this transaction. They are the company that gave you this credit. Payee = Purchased From, for cash and checks, right?

      E
      ExecCoach
      April 28, 2020

      I don't see these as a discount on purchases so I wouldn't put it against Office Supplies or gas. Why not enter them as negative expense items in "Bank & Credit Card Fees"? The bank charges me to use the credit card and other accounts and, sometimes, it discounts/rebates some of those fees because they "like" the way I'm using the accounts. This could get confusing if the rebates exceed the fees in a particular period but if that happens you have a nicer bank than I do. ;-)

      A
      Arnulfo
      May 2, 2023

      Our business has about 12 expense categories. We use our credit card to pay for 6 of these categories. I split our credit card rewards among these 6 categories. This gives me an accurate portrayal of the true cost of these expenses over time. If I assigned this as other income my data would be skewed.

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