When you receive cash back for using a debit card, how do you tag this?
I am not a accountant and it is probably best to speak to one. But in my eyes it sounds like something like Interests Received. So you are may able to tag this to that nominal account. You could also create a new nominal and call it Cash Back or so.
Is this money (cash back) received as a separate “banking” to your bank account? If so, then rhc is correct in that it can be tagged to an income in the range 49** such as Miscellaneous Income. You can also create a dedicated nominal code called “Cash Back” and keep in the 49** code range.
When cash back received.
Here is journal
Cash Dr. xxxx
Bank (debit card) entry Cr. XXXX
Therefore, can not be any type of income.
How to tag this debit card entry:
Bank transfer between accounts, select cash or petty cash Account.
There are two possible meanings for the phrase “cash back when using a debit card”.
If you mean making a purchase on your debit card and the retailer also lets you withdraw cash from your account in the same transaction, then that is @hemant’s answer - to avoid having to split the single purchase+cash transaction into two I would tag the whole money out of the current account as a transfer to petty cash, then separately log the purchase part as paid from petty cash.
If you mean the type of debit card where the card provider gives you free money as a rebate whenever you spend using the card, then that kind of “cash back” is income, and would need to be tagged as such (probably a “something not on the list” tag to misc income or similar).
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