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Monthly Account Fee / Acct Balance Rebate

RoKaRoKa Member Posts: 39 ✭✭

I have a fee rebate on my chequing account ( happy for it ) but it gives me a little bit of trouble on how to deal with it.
Monthly Account Fee appears as bank service charges ( and makes sense ) and Acct Balance Rebate appears as uncategorized income in transfers.
Is there anything I need to do about it ? It is an income, but I don't have an invoice for the bank's Rebate. Do I leave it as uncategorized income and click verify and complete ? Should I create some other type of income account ?
I am a bit confused about this. Thank you for your help.

in Accounting Technical Support

Comments

  • Ellie_Writes_ThingsEllie_Writes_Things Member Posts: 42 ✭✭

    I think you have a few options. You could account for it as income going into the Service Charges category, or you could make a custom account to categorize those rebates. It doesn't really matter what they end up categorized as, since it won't change the numbers anywhere important. Your payment accounts will still be accurate. So choose whatever makes the most sense to you. I'd vote against leaving them uncategorized, just for the sake of having better-organized transactions. @KanataPhotographer

    edited March 22, 2018
  • RoKaRoKa Member Posts: 39 ✭✭

    Thanks Ellie for your answer.
    I am a bit jumpy with all these accounts, and everything looks to me like if I don't do it properly, CRA is going to have me hanged. Trying really hard to do my taxes.

    Can I get a bit more clarification please ?

    Reading about all this I came across a few terms:
    refund, rebate, reimbursement, and discount.
    It is a bit hard to wrap my head around this, but it's cool stuff. Discount does not apply here, I know now.

    So, I found these two income accounts that I added to my chart of accounts:
    Reimbursed Expenses ( sys account )
    Refunds

    Situation A ( bank rebate )
    How should I classify the Bank Rebate ? Reimbursed Expenses or a Refund?

    This is the Chart of Accounts:

    This is how it looks in my bank account:

    This is how it looks in Wave now:

    Situation B (store refund, somewhat similar but I may be wrong)
    I bought 3 items at a store. (50 + 30 + 20) Expense: $100
    I returned 1 item: ( 30 ) Refund: $30

    So what looks now as an Income of $30, it will be a $30 Refund
    So is this a Refund as opposed to Reimbursed Expenses ?
    Maybe it doesn't matter again ?

    Thank you for taking the time to answer this!

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