Cash Back Rewards

[Leo Bolta]

This from a novice:  Could one handle a CC rebate by crediting the interest
charge account associated with that particular card?  With rebates
offsetting credit card charges, one could easily track the 'profitability
vs. expense' of holding that individual card?  If this makes sense, how
would one handle the debit side of the transaction?

  
-----Original Message-----
From: gnucash-user
[mailto:gnucash-user-bounces+lbolta=rogers.com at gnucash.org] On Behalf Of Les
Sent: March-16-17 2:03 PM
To: Edward Doolittle; John Ralls
Cc: GNU Cash User
Subject: Re: Cash Back Rewards

Thanks for the feedback.  The debit to the liability was straightforward, it
was the credit that stumped me.  I never thought of adding the expense such
as rebates. 

Les


On 03/16/2017 12:41 PM, Edward Doolittle 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 <mailto:jralls at ceridwen.us>>
> Sent: Thursday, March 16, 2017 10:52 AM
> Subject: Re: Cash Back Rewards
> To: Les <lelliott5 at gmail.com <mailto:lelliott5 at gmail.com>>
> Cc: GNU Cash User <gnucash-user at gnucash.org 
> <mailto:gnucash-user at gnucash.org>>
>
>
>
> > On Mar 16, 2017, at 9:22 AM, Les <lelliott5 at gmail.com
> <mailto: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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