It\u2019s one thing if you receive bonuses from your suppliers, but somewhat different if you\u2019re the one paying bonuses. Those are the bonuses you calculate on the bases that you\u2019ve determined with your clients and they\u2019re the ones that decrease your profits at the end.\u00a0<\/p>\n
Bonuses you pay to your customers are calculated on the bases that you\u2019ve determined and agreed with your clients, and paid for the period you find suits you \u2013 month, quarter or a year. Obviously it\u2019s an agreement, but normally you do have an upper hand in this deal.<\/p>\n
Anyhow, as to accounting treatment, bonuses paid to clients are decreasing your profits, but not through an expense account through your regular expenses. It\u2019s an expense account all right, but it\u2019s part of your sales revenue. Why you ask? Well, because bonuses paid to your suppliers are sales bonuses and as such, you\u2019ve essentially received less revenue. Albeit if you\u2019re the one actually paying the bonus and it\u2019s not taken directly off from every sales invoice at the spot, it\u2019s still showing as a decrease in sales revenue.<\/p>\n
And obviously, do keep in mind that if the bonus relates to the period X, it needs to be recognized within the results of period X<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s one thing if you receive bonuses from your suppliers, but somewhat different if you\u2019re the one paying bonuses. Those are the bonuses you calculate on the bases that you\u2019ve determined with your clients and they\u2019re the ones that decrease your profits at the end.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,78],"tags":[],"class_list":["post-4564","post","type-post","status-publish","format-standard","hentry","category-2-processes","category-2-8-revenue-and-receivables"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4564"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4564\/revisions"}],"predecessor-version":[{"id":4566,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4564\/revisions\/4566"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}