How would you categorize a rebate/credit?

harry askenazi

For example, I received an "efficiency rebate" from my utilities provider bc I installed an smart thermostat. How do you recommend categorizing this? I could put the same category as the thermostat I purchased, or I can categorize as "utilities:Heating", or a category called "refund". Any suggestions?

pgavon

@harry askenazi --

- Just a thought - for me a transaction like that one you describe is by nature a "non-recurring" item so I tend to keep non - recurring transactions in a separate category (like "Other") so that it is easier to understand period over period variances of expenses (such as Utilities: Heating).

Chris_QPW

This is really a personal decision.

I probably would tend to just put it back into the same category so that it reduces how much I paid.

It just depends on what you might want to report on in the future.

UserDavidC

As @Chris_QPW says, this is a personal decision.

So for what it is worth, I do the same thing that Chris does. Any rebate and/or credit goes against the original category (i.e. heating).

NotACPA

@harry askenazi  If I'm reading correctly, you've got 3 categories that are possibly involved:

1. The one used when you purchased the thermostat
2. Heating
3. Other

I definitely wouldn't use Other.  I'm probably use the purchase category, to show a reduction in that category.  The benefit of the purchase would be a future reduction in your Heating expense ... so I'd just let that reduction speak for itself and not use that for the Rebate.