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
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
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Comments
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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?0
