P&L expense account

sscors

Hello

does anyone know why Sales Returns is not an expense to be put in P&L?

Thanks

dyzio

Hi Sscors,
I'll have a go... Sales returns must be deducted from sales to show the actual amount of sales. If it was included in the expenses, the sales amount would be higher than actual sales, and therefore not the true amount. Also sales returns aren't expenses, this is simply something that has been returned for any reason. Hope it helps.
Agata

PGM

sscors wrote: »

Hello

does anyone know why Sales Returns is not an expense to be put in P&L?

Thanks

Its either an expense in P&L, or some people will just cancel the original sales invoice. I believe the first method is the better one to use but both will have the same effect on the bottom line.