I have a client who uses am AmEx Plum Card, which gives him a 2% discount off his balance if he pays his bill early. Since this is not exactly income, and the discount is applied to every transaction on the bill (even though the vendors are being paid in full), how should that discount be categorized in QB?
If it's an overall rebate, I usually tie it to an "Other Income" Account, and call it Rebate as a Sub Account to Other Income. It essentially reduces the Expenses on the Profit & Loss.
If it is a rebate from the airlines, like a Delta % or something, then I credit the Travel Account. AmEx has the OPEN card and you get credits from different businesses like Borders, Staples, etc
Just one opinion......hope it helps! :D
CDX
Thanks! That's helpful. Any other suggestions?
Also, I'm a bit confused why this discussion was moved to the Mac forum... I do use a Mac, but it's irrelevant for this question.
Anna, these types of discounts typically are handled through an Income type of account, much like a Sales Tax discount for paying your taxes in a 'timely' manner. There really aren't many other choices!
As for moving your post, Nic the forum monitor, typically moves posts here because the Mac version is in some ways very different from the Windows version. Clearly with accounting questions like yours it makes no difference, but rather than allow you to 'sit' unanswered he moved your post knowing you'd likely get an answer more quickly here.
Thanks for your help! And for clarifying the Mac situation.
