Cash Back Rewards

[George Riner]

I simply have a rebate account as an income account and whenever I buy something and use a rebate to pay for it that's when the rebate is recognized as income and I charge the expense to that account. 

So for instance, my Discover card builds up this cash rebate value - then when I buy something on Amazon and use my Discover card rebate, I book the computer part expense (for example) and pay for it with the Rebate acct. When I get an actual cash in my pocket rebate from something I just add to cash and I recognize it as rebate income. When I buy something that has a check from the manufacturer show up weeks or months later, when the check shows up I deposit it in my checking account and recognize it as rebate income. 

I don't bother tracking my current Discover card cash rebate balance, I only recognize it as income when I actually use it to buy something.

:George
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On March 16, 2017 10:41:43 AM PDT, Edward Doolittle <edward.doolittle at gmail.com> wrote:
>Uh, a rebate is a debit to liability and a credit to expense, no?
>Whether associated values are positive or negative depends on the
>"Reversed Balanced accounts" setting. When set to "Credit accounts"
>(the usual choice), a rebate will decrease liability balance and
>decrease expenses.
>
>Edward
>_____________________________
>From: John Ralls <jralls at ceridwen.us>
>Sent: Thursday, March 16, 2017 10:52 AM
>Subject: Re: Cash Back Rewards
>To: Les <lelliott5 at gmail.com>
>Cc: GNU Cash User <gnucash-user at gnucash.org>
>
>
>
>> On Mar 16, 2017, at 9:22 AM, Les <lelliott5 at gmail.com> wrote:
>> 
>> I have a credit card that pays a cash back after accumulating at
>least
>> $50 @ 3% for each purchase.  How do I handle this credit against a
>> current balance?
>
>I have a similar "rewards" card. I book the rebates as a credit (i.e. a
>negative value) to the CC liability account and a debit to an
>"Expenses::CC Rebates" account because I'm too lazy to figure out how
>much of the rebate to allocate to each of the "real" expense accounts
>that it should apply to.
>
>Regards,
>John Ralls
>
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