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Credit card cashback

How do I record cashback from a business credit card so it doesn't appear as a sale or such like


Posted by Paul Malone on Feb 7, 2015 9:51 AM GMT

Hi Paul,

I'm not an expert on the accounting treatment of cash back for credit cards, but if you don't want it to increase your overall sales figure then I suggest you create a Money Received transaction with the From Account set to an expense account such as 'Bank Fees' or 'Uncategorised Expenses'. This will reduce the balance of the expense account (and will therefore have the same effect on your profit figure as if you had used an income account).

Please check this approach with your accountant.

Regards,


Posted by Mark McLaren (Solar Accounts) on Feb 7, 2015 11:32 AM GMT