[GNC] How to Handle Mastercard Points

[Adam H. Kerman]

9:50am -0000 01/06/26 Cam Ellison <cam at ellisonet.ca> wrote:
>On 2026-01-05 21:23, Adam H. Kerman wrote:
>>10:22pm -0000 01/05/26 David T. :

>>>My apologies. I see that Cam was the poster using this term. But I do 
>>>think you're not talking about shares in Costco (which the reference to a 
>>>DRIP would imply).  I'm pretty sure the use of the term "Costco 
>>>dividends" was a misstatement, and the poster was referring to a rewards 
>>>program balance, rather than shares in the Costco corporation.

>>Let's say that you are correct, it's a rebate through a customer loyalty 
>>program. I'd make a similar recommndation to set up a contra expense 
>>account to book the rebate so it is not booked as income. This is key. 
>>Credit the rebate account, debit the liability account representing the 
>>store account.

>At the time it is applied, you could show it in a contra account under 
>Expenses. For the sake of argument, call it Expenses:Rebates. It would be a 
>debit to Liabilities:Mastercard and a credit to Expenses:Rebates (I think 
>it goes that way).

That is correct. When I apply the rebate toward the statement balance, 
American Express in my case, that is how I book it.

>Alternatively, you could set up an Assets:Rebates account and an 
>Expenses:Rebates account, and record receipt of the rebate there if you are 
>not going to apply it immediately. Then the payment transaction would 
>involve Liabilities:Mastercard and Assets:Rebates.

>This discussion has got me thinking about how I set up the Costco 
>rebate/dividend. I realise I have it wrong: it's a reduction of Expenses, 
>not a change in Equity.