Accounting for rebates

swinpush Registered Posts: 1 New contributor 🐸
I would like clarification on the correct treatment for customer rebates.

We give monthly and quarterly rebates to our customers based on their level of spend for the previous month/quarter. These rebates have always been deducted from our sales figures. Is there a problem with taking this cost straight to cost of sales rather than a deduction in our sales. This will give us a more consistent sales figure and will obviously increase our turnover.

Many thanks


  • LouiseR
    LouiseR Registered Posts: 59 💫 🐯 💫
    I think it has to come off of sales. Why don't you accrue monthly for the quarterly rebates so there is not a big hit every quarter?
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