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scoutnv
Level 2

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

How do I record or categorize a courtesy credit transaction on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?
Solved
Best answer April 16, 2020

Best Answers
JamesDuanT
Moderator

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

Hello scoutnv,

 

It is easy to record a credit card credit in QuickBooks Online. However, we won't be able to provide you a specific account to categorize the transaction. It'd be best to consult your accountant about this. 

Here's how to record the credit card credit:

  1. Click the + New button and select Credit Card Credit.
  2. Enter the details such as the Payee, the Bank/Credit account, and the Payment date.
  3. Go to the Category details and select the correct expense account in the CATEGORY column.
  4. Enter the amount and other details.
  5. Click Save and close.

Again, I'd recommend consulting your accountant. They know what's best for you and your books.

 

Let me know if you need anything else. Have a great day!

View solution in original post

Rustler
Level 15

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

@scoutnv 

 

A courtesy credit is not an expense as @JamesDuanT says in his post

 

enter the CC credit and use other income as the expense (reason) for the credit

View solution in original post

5 Comments 5
JamesDuanT
Moderator

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

Hello scoutnv,

 

It is easy to record a credit card credit in QuickBooks Online. However, we won't be able to provide you a specific account to categorize the transaction. It'd be best to consult your accountant about this. 

Here's how to record the credit card credit:

  1. Click the + New button and select Credit Card Credit.
  2. Enter the details such as the Payee, the Bank/Credit account, and the Payment date.
  3. Go to the Category details and select the correct expense account in the CATEGORY column.
  4. Enter the amount and other details.
  5. Click Save and close.

Again, I'd recommend consulting your accountant. They know what's best for you and your books.

 

Let me know if you need anything else. Have a great day!

View solution in original post

Rustler
Level 15

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

@scoutnv 

 

A courtesy credit is not an expense as @JamesDuanT says in his post

 

enter the CC credit and use other income as the expense (reason) for the credit

View solution in original post

scoutnv
Level 2

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

Thank you for your reply.  The proper category for such cc credits is really the question to be answered as you suggested.  Again,Thank you!

scoutnv
Level 2

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

Understood.  Thank you!

scoutnv
Level 2

How do I record or categorize a courtesy credit on my credit card given by the issuing bank to apply to any outstanding balance or future expenses?

I should also note, All transactions including the amount of the courtesy credit are automatically imported into QBO as transactions for review, and so there is really not much in the way of data having to manually enter other than determining the correct "category" for such "credit" transactions whether it be "courtesy credit" and/or "cash back" rewards which appear as credit card line item transactions in the bank feeds of this particular account  automatically imported or downloaded into the QBO application (note, I have another credit card where the "cash back" rewards ARE NOT included in the line item transactions as part of the direct feed or auto downloads in qbo.  I'm just uncertain as to if I need to create a  new item to the "chart of accounts" to account  for these cc credit card transactions or if these type of credits could simply be considered as "member contributions" ??? 

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