{"id":2819,"date":"2012-06-27T07:28:38","date_gmt":"2012-06-27T05:28:38","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=2819"},"modified":"2012-07-22T07:22:40","modified_gmt":"2012-07-22T05:22:40","slug":"your-supplier-gives-you-bonuses-at-year-end","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/your-supplier-gives-you-bonuses-at-year-end\/","title":{"rendered":"Your supplier gives you bonuses at year end"},"content":{"rendered":"

On occasions where you\u2019ve agreed with your supplier that at the year end you receive a bonus based on your purchases from them, you should make sure you keep a separate track on the transactions to first off account for the proper bonus amount (and obviously agree it with the supplier), but to also ensure you know which expenses are subject to bonus adjustments if need be. We say expenses, but bear in mind that also goods in stock are subject to bonus adjustments. When it\u2019s a supplier you buy just one type of goods or services, it\u2019s easier, but when it\u2019s a supplier that provides you with various goods and services, it may very well be that part of the bonus is taken into account when adjusting operating expenses and part of the bonus goes into cost of goods sold. So just to make it clear and have the right records from the start, keep track on all purchases that account for bonuses and make sure you do it on a continuous basis over the period. Your accounting entry as such at the time of the bonus accrual (if you know you\u2019ll get it, but haven\u2019t sent an invoice just yet to the supplier or received a credit from the supplier, be the case what it is):
\n
\n Db: Receivable to the supplier
\n Cr: Expense accounts affected<\/p>\n

In the case when also goods in stock are affected, the entry is as follows:<\/p>\n

Db: Receivable to the supplier (the part affecting goods in stock)
\n Cr: Inventory<\/p>\n

One key thing to remember when it comes to bonuses, is always keeping a clear and precise record of all purchases falling under the bonus agreement. <\/p>\n","protected":false},"excerpt":{"rendered":"

On occasions where you\u2019ve agreed with your supplier that at the year end you receive a bonus based on your purchases from them, you should make sure you keep a separate track on the transactions to first off account for the proper bonus amount (and obviously agree it with the supplier), but to also ensure […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,35],"tags":[],"class_list":["post-2819","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-7-basic-entries"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t