On the 7th of every month, the cashback available for redemption is updated after adjusting for any unpaid invoices. Cashback earned through Alaan can only be used to top up your Primary Wallet, after which it can be used for card payments or transferred to your sub-wallets.

When posting the relevant accounting journals in your books, there are two main ways to record cashback:

Let’s say your available cashback is AED 50. Here’s how each method would be recorded in your accounting books.

This is the most common approach and treats cashback as non-operating income, recognising it as additional revenue in your Profit & Loss statement (P&L).

How to record it in your accounting system:

This method classifies cashback as a separate income line item, often under “Other Income” in your P&L.

This method treats cashback as a reduction of expense, effectively acting as a rebate. In this approach, the amount is allocated proportionately across departments based on their share of total expenses. The wallet balance (where cashback is credited) functions like a bank account in your accounting software.

Using the same AED 50 cashback amount from the example above, the amount is allocated proportionately based on your total spend across departments.

Example allocation:

If your total Alaan Card spend was:

Then the AED 50 cashback is allocated proportionately:

How to record it in your accounting system:

This approach reduces your departmental expenses, improving cost accuracy, helpful for internal reporting or budgeting.