Suppose I buy a widget at $200.00, and expect a $30 rebate which I apply for, but which won't arrive for eight weeks. During that time I have to pay the vendor for the full (pre-rebate) amount.
What's the best way to handle this set of transactions: the purchase, the initial pre-rebate payment, the rebate receivable, and the rebate check?
Obviously, you post the full amount and pocket the rebate when it arrives.
Well, that's one way to do it (I suppose). But the suggestion doesn't account for proper posting of expenses. In other words, if you 'post the full amount and pocket the rebate' the expense is distorted - increased over what was actually paid.
To properly account;
-The purchase is posted to the appropriate account. Use either the Write Checks memo or the Enter Bills and Pay Bills screen.
-I'm not sure how/if the rebate is handled as a 'recievable'. If anything, it is a discount on price offered by the vendor. (Although I see the value in keeping track of outstanding rebates, I'm not sure there is a mechanism within QuickBooks to handle this. If you have a large volume of rebates, or if your business is one where vendors offer regular rebates based on volume/type or other purchases, there are specialty software products available to manage this type of accounting. A 'Google' of handling rebate' with and without the word accounting will yeild many links discussing this type of transaction.)
-When the rebate arrives, enter the rebate check (either in the register, or added with the days deposits on the Make Deposits screen) using the same account as you used for posting the original expense, and giving an appropriate memo (ie. HP rebate check for printer purchase 2/3/05).
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