Hi Aida, We can record the cash back rewards as Credit Ca...
We can record the cash back rewards as Credit Card Credit. Some entrepreneurs use Other Income as the affected account. Though, you can create an income account specifically for cash back rewards.
Let's create an income account. (Optional)
- On the left-panel menu, click Accounting and go the Chart of Accounts tab.
- Click the New button, and select Income in the Account Type field.
- Choose the Detail Type. You can refer to your accountant if you're unsure of what to choose.
- Enter your desired account name in the Name field, and click Save and Close.
Now, let's create a Credit Card Credit for cash back rewards.
- At the top, click the Create menu (+) and select Credit Card Credit.
- Choose a payee and enter the correct Credit Card Account.
- Go to the Account details section.
- Enter Other Income or the income account you created under the ACCOUNT column.
- Enter the cash back amount.
- Click Save and close.
You can also reach out to your accountant to ensure that this will be the best process for you.
Feel free to visit the Community again if you have other concerns. We're here to help.