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Frequent Explorer **

Customer Rebate Entry

I'm having a hard time figuring out the correct way to enter in a customer rebate that was recently redeemed. I ended up creating an item code call customer rebate tied to the Sales account but I don't think this is correct. When I run a sales report it shows up as a negative sales value for this customer.. Any suggestions on how to do this better?

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Best answer 07-17-2019

Accepted Solutions
QuickBooks Team

Re: Customer Rebate Entry

You're right with creating an item, NaturalStone.

 

We'll just have to do a few more steps to correctly create the item and record the redeemed rebate. I'll guide you all along.

 

First, let's create an account for customer rebates. Here's how:

  1. Click Lists, then go to Chart of Accounts.
  2. Click Account, then select New.
  3. Select Income, then click Continue.
  4. Enter a desired name, like Rebates, then click Save & Close.

Next, let's edit the item you've created to set it up correctly. Here's how:

  1. Click Lists, then go to Item List.
  2. Look for the item, then double-click to open the setup window.
  3. Click the TYPE drop-down arrow, then select Other Charge.
  4. Click the Account drop-down arrow, then select the rebate account you've created earlier.
  5. Click OK.

Although, if you've set up the item as a service, you'll be unable to change the type. You'll have to recreate the rebate item using the correct type and account. 

 

Then, let's create a customer rebate. Here's how:

  1. Click Customers, then select Create Credit Memos/Refunds.
  2. Select the customer who'll be receiving the rebate.
  3. Click the Item drop-down, then select the rebate item you've created.
  4. Enter the amount.
  5. Click the Edit menu, then select Mark Credit Memo As Pending.
  6. Click Save & Close.

Lastly, here's how you can record the transaction when the customer redeemed the rebate:

  1. Click Customers, then select Create Credit Memos/Refunds.
  2. Click the Back or Previous arrow button until the pending credit memo will display on the screen.
  3. Click the Edit menu, then select Mark Credit Memo As Final.
  4. Click Save & Close to open the Available Credit window.
  5. Select Give a refund, then click OK.
  6. Click the Issue this refund via drop-down arrow, then select Cash
  7. Click OK,and issue the rebate.

If you need something else, leave a comment below. Have a great day! 

3 Comments
QuickBooks Team

Re: Customer Rebate Entry

You're right with creating an item, NaturalStone.

 

We'll just have to do a few more steps to correctly create the item and record the redeemed rebate. I'll guide you all along.

 

First, let's create an account for customer rebates. Here's how:

  1. Click Lists, then go to Chart of Accounts.
  2. Click Account, then select New.
  3. Select Income, then click Continue.
  4. Enter a desired name, like Rebates, then click Save & Close.

Next, let's edit the item you've created to set it up correctly. Here's how:

  1. Click Lists, then go to Item List.
  2. Look for the item, then double-click to open the setup window.
  3. Click the TYPE drop-down arrow, then select Other Charge.
  4. Click the Account drop-down arrow, then select the rebate account you've created earlier.
  5. Click OK.

Although, if you've set up the item as a service, you'll be unable to change the type. You'll have to recreate the rebate item using the correct type and account. 

 

Then, let's create a customer rebate. Here's how:

  1. Click Customers, then select Create Credit Memos/Refunds.
  2. Select the customer who'll be receiving the rebate.
  3. Click the Item drop-down, then select the rebate item you've created.
  4. Enter the amount.
  5. Click the Edit menu, then select Mark Credit Memo As Pending.
  6. Click Save & Close.

Lastly, here's how you can record the transaction when the customer redeemed the rebate:

  1. Click Customers, then select Create Credit Memos/Refunds.
  2. Click the Back or Previous arrow button until the pending credit memo will display on the screen.
  3. Click the Edit menu, then select Mark Credit Memo As Final.
  4. Click Save & Close to open the Available Credit window.
  5. Select Give a refund, then click OK.
  6. Click the Issue this refund via drop-down arrow, then select Cash
  7. Click OK,and issue the rebate.

If you need something else, leave a comment below. Have a great day! 

Frequent Explorer **

Re: Customer Rebate Entry

Thanks Kristine! It is set-up as suggested. I originally created the Rebate item type as a Non-Inventory Part, would it be a problem to leave it this way or should I change it to Other Charge?

QuickBooks Team

Re: Customer Rebate Entry

I'm glad you've set it up already, NaturalStone.

 

I suggest using Other Charge. This item type is used for things like shipping charges or markups. On the other hand, Non-inventory type is used for items you purchase but don't resell, or sell but don't purchase, and/or purchase and resell but don't track as inventory.

 

As always, I recommend conferring with your accountant on the best way to categorize the item.

 

Let me provide you this article about adding, editing, and deleting items

 

Tag me if you have more questions. I'll check your post from time to time. 

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