Adding a Credit to a Transaction

I categorize my online purchases to include the item's cost and the sales tax that I was charged. When I file my state taxes (OK) they want to know if I paid sales tax on my online orders so I keep track of them.
When I order something and use reward points to pay for it, the sales tax is paid with the points as well. I enter the purchase in Quicken (just to keep track) as $0 but still need to keep the item's amount and sales tax categorized.
If the purchase is $18.00 and sales tax is $2.00, how to I enter that in the split so it shows the split amounts but $0 in the register?
Thank you.

Best Answers

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    Answer ✓
    I created a category named "Credit Card Rewards". You could have a transaction with 3 split lines. Two lines with negative numbers for the purchase and tax, and a 3rd line with a positive number categorized as Credit Card Rewards to zero out the transaction.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • UKR
    UKR SuperUser ✭✭✭✭✭
    Answer ✓
    Aren't those two separate transactions in your credit card statement?
    1. The purchase, as split detail: $-18.00 Clothing, $-2.00 Sales Tax
    2. The reward points refund, $20.00 Reward Points
    If they are, then you should record them as two separate transactions in your register, too, so it's easier to reconcile transaction by transaction with the bank statement.
    If they are not, then all 3 items above can go into one transaction, making sure that expenses and income have proper + or - signs on the amounts so that the result is a net 0.00 transaction.

Answers

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    Answer ✓
    I created a category named "Credit Card Rewards". You could have a transaction with 3 split lines. Two lines with negative numbers for the purchase and tax, and a 3rd line with a positive number categorized as Credit Card Rewards to zero out the transaction.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • UKR
    UKR SuperUser ✭✭✭✭✭
    Answer ✓
    Aren't those two separate transactions in your credit card statement?
    1. The purchase, as split detail: $-18.00 Clothing, $-2.00 Sales Tax
    2. The reward points refund, $20.00 Reward Points
    If they are, then you should record them as two separate transactions in your register, too, so it's easier to reconcile transaction by transaction with the bank statement.
    If they are not, then all 3 items above can go into one transaction, making sure that expenses and income have proper + or - signs on the amounts so that the result is a net 0.00 transaction.

  • Harveyshot
    Harveyshot Member
    Thanks. Never thought to add an income category for the rewards. Appreciate it.
This discussion has been closed.