Manufacturer Cashback deal from Purchase of a PC

Accounting
1

Hi all.
A PC is purchased and assigned to fixed assets as it is expected to last several years. The purchase was made by the business from Ebuyer. There was an offer to claim cashback from the manufacturer, Lenovo, which I did. The cashback has now been received via a company called OPIA Ltd.

Should the payment be applied to Fixed Assets to effectively refund part of the purchase price and reduce the starting value of the asset?
Or, should it be counted as Miscellaneous Income?

Please note, this is not on my account - it is my wife’s sole trader account - I help her with the accounts.
Thanks

2

Hi @martinprice

I’ve found this previous post regarding cashback, which could be of use:
http://community.quickfile.co.uk/t/category-for-cashback/5061

Disclaimer: I’m not an accountant. However, there are accountants on the forum who may be able to help further

3

Yes, I saw that one as well, but I thought purchase of a fixed asset could be different as it effectively reduces the purchase price of the asset.

4

For this sort of accounting advice you may want to post something on the following forum:

http://www.accountingweb.co.uk/anyanswers/

This is frequented by accountants and you may get a more definitive answer.