how to handle loyalty reward from bank

Question asked by Mike Ashworth 7 years ago

Hi,

I bank with Barclays and every month they pass through a small credit to my bank account as a "loyalty reward".

So, i;m wondering how to account for this. I've thought of doing the following

Set Barclays up as a customer and account for the small credit each month as being from them. It will be processed against a a new account code i create for "loyalty reward". Created under the finance income expense type.

Alternatively i could process it as a refund against bank charges (i pay a small sum each month to barclays for the account), though that doesnt appear to be true to the nature of what the small credit received is each month.

Thoughts?

2 Replies

I'm with the same bank and I process it as a refund against bank charges.

Hi Mike,

The method outlined above is correct, you can either create an invoice coded to the custom account, then allocate the receipt against it. Or, alternatively, when explaining the bank statement, you can allocate the receipt to the Loyalty Reward code and hit Add Transaction from the Bank Import tool page, which will skip out the step of creating an invoice.

Tommy

I'm with the same bank and I process it as a refund against bank charges.

Reply to this question

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are