Accounting for Cashback on an asset

VivS Registered Posts: 5 New contributor 🐸

We recently purchased an all-singing-all-dancing printer and were promised £500 cashback. The cheque has now arrived (much to my surprise as all i had to do was complete a very simple postcard) but I am unsure as to how to record it in Sage - any ideas would be most welcome, please?

Many thanks



  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
    Hi Viv

    Post as a bank receipt directly to nominal code 4200 - Sale of Assets. Accounting for VAT if necessary
  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
    It's not a sale of an asset though?

    I deduct it off the cost.. or show it as "other income"...

    Maybe i'm wrong :(...
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    If the printer is advertised for £1500 with a cash back of £500 after 30days and you buy that printer by paying a cheques (or other alternative) of £1500 what's your double entry?

    Debit £1500 Fixed Asset Account
    Credit £1500 Bank

    If you get £500 back, what is the true cost of the Printer?

    What will you debit? and what will you credit?
  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
    I'd say it's the £1500 - £1000 as you bought the printer knowing you'll get £500 back...

    So i'd credit the cost..
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Crediting "Cashback received" is probably the most correct answer.

    I also would credit the Asset Cost account though.

    Am I allowed to say I'd just pocket the cash? :lol:
  • VivS
    VivS Registered Posts: 5 New contributor 🐸
    Hi All

    Many thanks for all your input, sorry not to have answered sooner been out of circulation having dropped my didn't like it and refused to behave so now i'm £90 poorer!

    i don't particularly want to show the £500 (less vat of course) in revenue so have concluded that it should reduce the original cost of the asset.

    This forum is great for those of us who don't have knowledgeable colleagues to ask.

    Heatfelt thanks to all concerned.

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