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accounting266
Level 1

How do I record a Points bought using credit card

Hi we are selling retail products to our members which are paid in Cash, Visa-Master Cards  and Members are earning Points and use it to purchase products and make commissions as well  and there are times members are using Points which they earned for purchasing items the Questions is Members are buying POINTS  from us using Credit Cards. How will I records  POINTS  purchased by Credit Card  not sure if Points is considered an Income please help and thank you

Solved
Best answer June 04, 2021

Best Answers
Angelyn_T
QuickBooks Team

How do I record a Points bought using credit card

Hi there, @accounting266.

 

It's my pleasure to help you with recording points acquired to the members who are paid in Cash, Visa-Master Cards. 
 

I can think of two options for this. First, you can get a check which you can deposit and use an income account as the source account. 

 

To create an income account:
 

  1. Go to the Lists menu, then click on Chart of Accounts.
  2. From the Account drop-down, click on New.
  3. Choose income as a category, then tap on Continue.
  4. Enter the account's name (Income Account Rewards or Points), then click on Save and Close.

 

Once done, record a deposit for the points earned.

 

  1. Go to the Banking page, then click on Make Deposits.
  2. Fill in the information from the Make Deposits window.
    • Deposit to Account.
    • Date
    • Receive From
    • From Account (which is the income account you've created)
    • Amount
  3. Save the transactions.

 

The second option is to track the points once you use them. They are income to business either applied as a credit card credit reducing the balance.

 

Whatever action you take, I recommend consulting with a professional accountant for further assistance. They are the ones who can guide you in keeping your financial records accurate and accounting for your transactions accordingly.

 

You can check out this articles to learn more about deposits and customer's credits:

 

 

Moreover, here's how you can learn more about the different ways you can track customer transactions in QuickBooks Desktop.

 

If you have any other questions about recording rewards or points in QuickBooks Desktop, please notify me by adding a comment below. I'm always here to help. Have a good one!

View solution in original post

1 Comment 1
Angelyn_T
QuickBooks Team

How do I record a Points bought using credit card

Hi there, @accounting266.

 

It's my pleasure to help you with recording points acquired to the members who are paid in Cash, Visa-Master Cards. 
 

I can think of two options for this. First, you can get a check which you can deposit and use an income account as the source account. 

 

To create an income account:
 

  1. Go to the Lists menu, then click on Chart of Accounts.
  2. From the Account drop-down, click on New.
  3. Choose income as a category, then tap on Continue.
  4. Enter the account's name (Income Account Rewards or Points), then click on Save and Close.

 

Once done, record a deposit for the points earned.

 

  1. Go to the Banking page, then click on Make Deposits.
  2. Fill in the information from the Make Deposits window.
    • Deposit to Account.
    • Date
    • Receive From
    • From Account (which is the income account you've created)
    • Amount
  3. Save the transactions.

 

The second option is to track the points once you use them. They are income to business either applied as a credit card credit reducing the balance.

 

Whatever action you take, I recommend consulting with a professional accountant for further assistance. They are the ones who can guide you in keeping your financial records accurate and accounting for your transactions accordingly.

 

You can check out this articles to learn more about deposits and customer's credits:

 

 

Moreover, here's how you can learn more about the different ways you can track customer transactions in QuickBooks Desktop.

 

If you have any other questions about recording rewards or points in QuickBooks Desktop, please notify me by adding a comment below. I'm always here to help. Have a good one!

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