Any suggestions on how to treat Costco Rewards?

THEmikehd
THEmikehd Quicken Windows Subscription Member ✭✭✭
in Budgeting and Planning Tools (Windows)

This question applies to all types of store credit refunds I would suspect. We get our yearly Costco Rewards check, which is only redeemable in store against purchases, we merrily spend it plus a bit more of course, but now comes the time to document the transaction in the register.

Say the total is $400, and consists of more than one spending category, and the Reward is $200. I want to accurately track the spending actually done and account for the Reward as well.

Any ideas would be welcome.

Mike - Quicken Deluxe - latest version always

Best Answer

  • UKR
    UKR Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓

    Take the money and run … to Costco. 😉
    Next time you make a purchase and cash the rewards coupon, allocate the coupon amount to an "Other Income" category, e.g.,

    image.png

    This year, because I got more cash back for the coupon than I purchased, $2.83, the above is recorded as a deposit in my $-Cash account register.

Answers

  • UKR
    UKR Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓

    Take the money and run … to Costco. 😉
    Next time you make a purchase and cash the rewards coupon, allocate the coupon amount to an "Other Income" category, e.g.,

    image.png

    This year, because I got more cash back for the coupon than I purchased, $2.83, the above is recorded as a deposit in my $-Cash account register.

  • BK
    BK Quicken Windows Subscription Member ✭✭✭✭

    With the Costco reward, I wait until it is time for my membership dues and I use it to pay for that. So my membership fee, instead of $130, becomes $30 for example. With credit card cash rewards, I created a non-taxable income category called "Cash Back Reward" where I apply the reward to my statement and when it is downloaded I categorize it as that.

    - Q Win Deluxe user since 2010, US Subscription
    - I don't use Cloud Sync, Mobile & Web, Bill Pay/Mgr

  • Palace
    Palace Member ✭✭✭✭

    As for me, I always put the Credit Card Rewards (or a significant portion of) into my Saving Accounts (I have several) or Add On CD accounts. I don't attempt to track C.C. Savings Rewards in a separate category as you wish to do, if I understand correctly. I guess you could create a separate savings or checking account specifically for C.C. Rewards, labeling it as such; then when the total is high enough, begin spending from those accounts. Then label the items you buy as money from C.C. Rewards as a Category or Tag; or label it as such in the memo field in ledger?

    ⚓️

  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭

    Since the Costco Rewards can only be spent at Costco, I'd post it into my "Receivables" account and use that Receivables account as part of a split transaction with my next purchase.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • THEmikehd
    THEmikehd Quicken Windows Subscription Member ✭✭✭

    Thanks for all the suggestions. I was able to use the method described by @UKR to achieve my goal of having accurate reporting the expenses as well as capturing the reward income (I just used Misc Income with a tag for Costco).

    Mike - Quicken Deluxe - latest version always

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