How would you categorize a rebate/credit?

Question

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?

NotACPA · Answer

@harry askenazi  If I'm reading correctly, you've got 3 categories that are possibly involved:* The one used when you purchased the thermostat
* Heating
* 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.

UserDavidC · Answer

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).

Chris_QPW · Answer

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.