Bookkeeping

How do I treat a Cashback Promotion our company is paying customers?

Hello,
We are a Tech Startup matching women with similar build, appearance and style, and looking to implement a Cashback promotion for customers who “shop the look” through our app, but I’m not sure how to book this in the system. We don’t have any income yet. The income will (eventually) come from member subscriptions, as well as commission from affiliate sales. We are trying to encourage purchases while simultaneously testing systems and generate revenue. Do I charge it as negative income against Affiliate Sales? Should tax be applied?
Thanks in advance!

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