How to record Credit Card Reward Cash issued directly to pay off credit card balance?

Hello, EmyFur

I appreciate you turning to the Community for support. Making sure you're recording your transactions properly is an essential step for maintaining clean books. I would be happy to point you in the right direction.

To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice. They'll be able to guide you in choosing the correct transaction type as well as which accounts to affect so that your accounts can end up with the right balance. Having an accountant can be beneficial for you and your business. You can add your accountant to your books by following the steps listed here. If you don't have an accountant, you can find one who has experience using QuickBooks near you by clicking here.

If you have any other questions, feel free to reach back out.

Check with your accountant to see if they have already set this G/L account up or if you need assistance with the entry. They may suggest another way to handle this type of transaction or do it for you if you aren't comfortable with creating a new income account in your chart of accounts.

A credit card reward (like converting points to pay your credit card balance) must be captured as income. You'll need to set up a new account in your COA that references "credit card rewards". You can then enter a journal entry to record the transaction: debit credit card reward account and credit the credit card account that was paid. Make sure you enter a description about the entry so that it will give you all the details you need if you or your accountant look at it months later.