I have a credit card which, like a few others, accrues a small
percentage (1-2%) of the amounts spent as a rebate. The rebate isn't
subtracted from each charge, but accumulates in the card account as
"Reward Points" until I cash them in. The amount is then credited to
the card account as a pa
Because the rewards aren’t necessarily attributable to any one expense (or to
split them out proportionately would be a whole lot of work), I always book
them to miscellaneous income. I also include that income when I budget.
Hope that helps,
Steve
Sent from my iPhone
> On Oct 14, 2021, at
I also put it into a miscellaneous income.
On 10/14/21 9:07 AM, Steve Welch via gnucash-user wrote:
Because the rewards aren’t necessarily attributable to any one expense (or to
split them out proportionately would be a whole lot of work), I always book
them to miscellaneous income. I also in
I also treat it as miscellaneous income, and account for it when received,
as a welcome windfall.
You COULD allocate it against the credit card expenditure, as negative
expense, which would be more realistic, but I like seeing a windfall gain
once a year and then treat myself accordingly. Note th
One further thought: treating rewards as a negative expense will mask the true
cost of whatever was purchased. If you stop using your rewards card, suddenly
your apparent expenses will go up.
Both professionally and personally I generally prefer to not muddy expense
accounts with negative en
Because it is not considered taxable income in my jurisdiction, and
because I only use the credit card due to the fact that I will get
rewards (otherwise I would be a check or cash guy), I record it as a
negative miscellaneous expense. Outside of jurisdictions where this
would be considered ta
ubject: [GNC] Credit Card Rewards Refund
I have a credit card which, like a few others, accrues a small
percentage (1-2%) of the amounts spent as a rebate. The rebate isn't
subtracted from each charge, but accumulates in the card account as
"Reward Points" until I cash them in. The am
ia gnucash-user
Sent: October 14, 2021 9:23 AM
To: rsbrux
Cc: gnucash-u...@lists.gnucash.org
Subject: Re: [GNC] Credit Card Rewards Refund
One further thought: treating rewards as a negative expense will mask the true
cost of whatever was purchased. If you stop using your rewards card, suddenly
I also record as misc. non-taxed income. Thinking of titling a new income
account as "Rebates".
On Thu, Oct 14, 2021, 05:34 rsbrux via gnucash-user <
gnucash-user@gnucash.org> wrote:
> I have a credit card which, like a few others, accrues a small
> percentage (1-2%) of the amounts spent as a re
Perhaps historical perspective might help, especially with businesses,
because might want to treat the same way as when invoices typically were
like this, except conditional on when paid.
I have no idea how accrual treats this (would have treated this) when in
the old days a vendor might send
The OLD day? We still have a couple of vendors like that. Happily for us
accrual accounting is their problem.
Sent from my iPhone
> On Oct 15, 2021, at 12:17 PM, Michael or Penny Novack
> wrote:
>
> Perhaps historical perspective might help, especially with businesses,
> because might w
In the US, credit card rebates are best treated as a contra-expense account
for rebates. In other jurisdictions, this might differ.
-p
On Fri, Oct 15, 2021 at 12:47 PM R. Victor Klassen
wrote:
> The OLD day? We still have a couple of vendors like that. Happily for us
> accrual accounting is
I know a business with plenty of vendors who still offer 2/10 Net30
terms. (furniture industry)
Since the 2% is deducted from the payment, the expense is directly
reduced by a contra-account 'Discounts and Allowances'.
I don't recall any cases where full payment had to be rendered and then
t
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