E-commerce
Loyalty Points Breakage (Expired Points)
Recognizing revenue from loyalty points that expired without being redeemed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loyalty Points Liability | Liability (-) | 1,200.00 | - |
| Other Income (Points Breakage) | Revenue (+) | - | 1,200.00 |
💡 Accountant's Note
Points that expire are an obligation that no longer exists. The liability is released to Other Income. The amount is estimated using historical expiry patterns.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.