proper transaction to enter when paying credit card balance from points
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My credit card gives cash rewards cash back. From what I can tell, either I can use the accumulated cash back to pay my credit card balance, or I can put the balance into the credit union savings account.
I wish to pay my next credit card balance in its entirety using the accumulated cash back.
what would the proper transaction be to enter? The credit card is scheduled through the Bill & Income tab in Quicken for Mac, and is normally shown as a transfer from my checking account.
I wish to pay my next credit card balance in its entirety using the accumulated cash back.
what would the proper transaction be to enter? The credit card is scheduled through the Bill & Income tab in Quicken for Mac, and is normally shown as a transfer from my checking account.
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There are various accounting methods to use here.The method I use is with a Category called "Credit Card Rebates", with a Subcategory for each credit card I have that has a points reward program. This Category is in Quicken's Category Group of "Personal Expenses", (don't know if Mac has used the original Window's convention here), but you are free to call if a form of "income" if you wish. When I use points to pay the credit card balance I enter the amount in the "Payment" column of the credit card Register with an offset to the Credit Card Rebates Category.Another way of doing this is to analyze the credit card balance as to the various Categories and Accounts you've used to come to that balance, and then enter the payment, as before, as a payment in the credit card Register, splitting the amount out among the Categories and Accounts.5
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I do a similar thing. I put a credit transaction in the credit card register using my category Credit Card Rebates (income). This lowers the outstanding balance on the card. If the amount is not the full outstanding balance then I'm done.
If the rebate is the full outstanding balance, then I also enter my regular scheduled monthly credit card payment transfer transaction (from checking to the card) but with a zero amount and a note in the memo field something like "no payment due -- covered by rebate".Quicken Mac Subscription; Quicken Mac user since the early 90s5
Answers
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There are various accounting methods to use here.The method I use is with a Category called "Credit Card Rebates", with a Subcategory for each credit card I have that has a points reward program. This Category is in Quicken's Category Group of "Personal Expenses", (don't know if Mac has used the original Window's convention here), but you are free to call if a form of "income" if you wish. When I use points to pay the credit card balance I enter the amount in the "Payment" column of the credit card Register with an offset to the Credit Card Rebates Category.Another way of doing this is to analyze the credit card balance as to the various Categories and Accounts you've used to come to that balance, and then enter the payment, as before, as a payment in the credit card Register, splitting the amount out among the Categories and Accounts.5
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I do a similar thing. I put a credit transaction in the credit card register using my category Credit Card Rebates (income). This lowers the outstanding balance on the card. If the amount is not the full outstanding balance then I'm done.
If the rebate is the full outstanding balance, then I also enter my regular scheduled monthly credit card payment transfer transaction (from checking to the card) but with a zero amount and a note in the memo field something like "no payment due -- covered by rebate".Quicken Mac Subscription; Quicken Mac user since the early 90s5 -
I guess I'm overcomplicating things. If I have a multi category credit card transaction (some is groceries, some is wife's clothing, for example) where there's something like $10 off total purchase, I'll enter the $10 as "Gift:Non-Family" - the same category we use for non-charitable gifts to non-family.
That's what I'll do here. Thanks!
Procedurally, that means marking the bill as won't pay, and waiting for the credit transaction to be downloaded, and then categorizing the transaction as "Gift:Non-Family"0
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