{"id":4753,"date":"2014-02-21T07:43:27","date_gmt":"2014-02-21T05:43:27","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4753"},"modified":"2014-02-16T07:44:32","modified_gmt":"2014-02-16T05:44:32","slug":"are-sales-bonuses-an-expense-or-decrease-in-revenue","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/are-sales-bonuses-an-expense-or-decrease-in-revenue\/","title":{"rendered":"Are sales bonuses an expense or decrease in revenue?"},"content":{"rendered":"<p><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><span style=\"font-family: Calibri;\">I can understand why this question may arise. On some cases you\u2019re actually paying and on some cases you decrease outstanding balances for an example.<\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><span style=\"font-family: Calibri;\">Either way, sales bonuses you pay to your customers, they\u2019re always, always decreasing your revenue. On the other hand bonuses you get from your suppliers decrease your expenses. It\u2019s always about decreasing the item you got a bonus for or paid a bonus.\u00a0<!--more--><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><span style=\"font-family: Calibri;\">You could also think they\u2019re your expenses since it\u2019s not your income effectively. You\u2019re encountering an expense. But if you think about, it\u2019s connected with sales revenues \u2013 volumes, amounts or whatever, but it\u2019s connected with sales revenue, paid based on something in sales revenue. It should thus be recognized within sales revenue to make the total amount to reflect the actual amount you got from your sales. For an example, if you give discount if your client pays before the due date \u2013 an expense on its own or decrease in sales? Did you get the full amount of an amount less the discount? Maybe this answers your question.<\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: medium;\"><span style=\"color: #000000;\"><span style=\"font-family: Calibri;\">If it\u2019s something you pay after the customer has made a payment, it\u2019s still connected with the sales revenue and you should reflect you effectively got less sales revenue.<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I can understand why this question may arise. On some cases you\u2019re actually paying and on some cases you decrease outstanding balances for an example. Either way, sales bonuses you pay to your customers, they\u2019re always, always decreasing your revenue. On the other hand bonuses you get from your suppliers decrease your expenses. It\u2019s always [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,39],"tags":[],"class_list":["post-4753","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-11-revenue"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4753"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4753\/revisions"}],"predecessor-version":[{"id":4754,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4753\/revisions\/4754"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4753"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}