Noob question about rebates/savings

[Michael DeBusk]

Yawar Amin wrote:

> then put in the Stop & Shop rebate (0.49) as an income.

Despite the maxim "a penny saved is a penny earned", this money is not
income. It's recorded in a "contra" account, usually a credit-balance
account under the debit-balance "cost of goods sold". People on a
cash-accounting basis don't worry about them.

(You don't want anyone, not even yourself, to believe you're earning
money you aren't earning.)

Since the OP wants to, though, he could do it three ways, depending on
his goals. He could either:

- Open a savings account somewhere and deposit all savings, discounts,
and rebates into it. Credit Cash or Checking for 2.99, debit Groceries
for 2.50, debit Savings for 0.49; or

- Set up a contra account for each expense at which he gets a discount,
rebate, etc. Credit Cash or Checking for 2.99, debit Groceries:Purchases
for 2.50, debit Groceries:Discounts for 0.49; or

- Write it in a notebook, keep it in a spreadsheet, etc. Something
outside the chart of accounts. You still get to watch it add up, but you
don't make your bookkeeping chores any more complex than they need to be.

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