How to enter rebate from credit card into sage instant accounts?
Rebate from credit card is tax free, so how to enter it in business accounts without including it in income?
This refers to the loyalty reward from the credit card company, which is credited to the credit card account. There is no tax to pay on this rebate, which is an incentive reward, so I think I do not need to enter it as income – so how do I reconcile my credit card account?
June 2nd, 2010 at 11:08 pm
You will need to allocate it to the bank account into which the rebate is paid.
Then, I would enter it as a receipt to ‘drawings for self’. In effect this will reduce your drawings and therefore be correct for tax purposes.
Dixie is right. I was assuming that this was some sort of rebate for personal reasons. If you mean refund to credit card used for a business transaction, then you really need to show this as a receipt, using the account and type of expense that it originally referred to. In other words the same codes that you used for the payment, but showing receipt instead of payment.
June 2nd, 2010 at 11:32 pm
Yes treat it as a payment received but whats it for – if its a refund then it needs to offset the expense item (any accrual should be reversed out separately) If it isn’t how come its tax free
So it all depends on why you received it