Rebates, Refunds and Returns: separate category or income in an expense category?

#5 05-07-2006, 07:33 PM

Nevermind!!!
I found the answer in the thread on "category for refunded credit card
purchases".

"JAB1993" wrote:

- quote -

> I like this solution but there is still one problem. When you look at the
> spending by categories pie chart, it does NOT include the refund/rebate... So
> if you spend $500, but get a $100 rebate, the spending pie chart will show
> $500, not $400... I guess it only includes expenses and not the "income" in
> the same category.
> Is there a way to fix this?
> "Tod DeBie" wrote:
> > If you buy something and get a rebate, return something or get some kind of
> > partial refund, do you categorize it as income in the expense category of
> > the item in question, or do you have a separate category to track these
> > things?
> > >

#4 05-07-2006, 07:10 PM

I like this solution but there is still one problem. When you look at the
spending by categories pie chart, it does NOT include the refund/rebate... So
if you spend $500, but get a $100 rebate, the spending pie chart will show
$500, not $400... I guess it only includes expenses and not the "income" in
the same category.
Is there a way to fix this?

"Tod DeBie" wrote:

- quote -

> If you buy something and get a rebate, return something or get some kind of
> partial refund, do you categorize it as income in the expense category of
> the item in question, or do you have a separate category to track these
> things?

#3 05-01-2006, 12:06 AM

"Tod DeBie" <tod_debie[at]hotmail.com> wrote in message
news:1OudnX-5MIgT2cjZRVn-jg[at]comcast.com...
- quote -

> Just to clarify, if you by something (a computer) and categorize it as an
> expense (computers) and get a rebate ($50), you clasify the rebate in the
> computers category, which is an expense category. The software throws up
> a warning about this, but I ignore the warning because it seems to make
> the more sense doing it this way than putting the rebate into an income
> category. It is clearly not income.
> Does anyone have a different view on this?

I concur with your assessments. Others may not. Unless obliged to have an
opinion issued about their finances by a CPA, everyone should do what works
for them.

I think a CPA may concur, anyway. PetSmart does, for example.
http://www.irconnect.com/petm/files/..._Section2.html "Vendor
Rebates and Promotions": "Rebate income is recorded as a reduction of cost
of sales,..."
--
Chris Cowles
Gainesville, FL

#2 04-30-2006, 11:49 PM

Sure it is or should be. Debiting and crediting accounts ( journals )
is standard accounting 101. You are doing it correctly regardless if
MS Money complains.

The terms Expense and Income are confusing to me as they get extended
to places where they do not belong.

arthur
==

On Sun, 30 Apr 2006 15:31:34 -0600, "Dick Watson"
<littlegreengecko[at]mind-enufalready-spring.com> wrote:

- quote -

> I track it as an offset against the original expense category. I'm not sure
> this is allowed in * Business * versions, nor sure if it is wise in that
> context.
> "Tod DeBie" <tod_debie[at]hotmail.com> wrote in message
> news:h_udnXgHhPUYtsjZRVn-iw[at]comcast.com...
> > If you buy something and get a rebate, return something or get some kind
> > of partial refund, do you categorize it as income in the expense category
> > of the item in question, or do you have a separate category to track these
> > things? > >

#1 04-30-2006, 11:13 PM

Just to clarify, if you by something (a computer) and categorize it as an
expense (computers) and get a rebate ($50), you clasify the rebate in the
computers category, which is an expense category. The software throws up a
warning about this, but I ignore the warning because it seems to make the
more sense doing it this way than putting the rebate into an income
category. It is clearly not income.

Does anyone have a different view on this?

Tod

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:eWjj11JbGHA.4292[at]TK2MSFTNGP04.phx.gbl...
- quote -

> I track it as an offset against the original expense category. I'm not sure
> this is allowed in * Business * versions, nor sure if it is wise in that
> context.
> "Tod DeBie" <tod_debie[at]hotmail.com> wrote in message
> news:h_udnXgHhPUYtsjZRVn-iw[at]comcast.com...
> > If you buy something and get a rebate, return something or get some kind
> > of partial refund, do you categorize it as income in the expense category
> > of the item in question, or do you have a separate category to track
> > these things?
>

04-30-2006, 09:31 PM

I track it as an offset against the original expense category. I'm not sure
this is allowed in * Business * versions, nor sure if it is wise in that
context.

"Tod DeBie" <tod_debie[at]hotmail.com> wrote in message
news:h_udnXgHhPUYtsjZRVn-iw[at]comcast.com...
- quote -

> If you buy something and get a rebate, return something or get some kind
> of partial refund, do you categorize it as income in the expense category
> of the item in question, or do you have a separate category to track these
> things?

#-1 04-30-2006, 09:26 PM

If you buy something and get a rebate, return something or get some kind of
partial refund, do you categorize it as income in the expense category of
the item in question, or do you have a separate category to track these
things?

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