Skip to main content
K
kellihotard
October 10, 2023
Question

Reimbursements?

  • October 10, 2023
  • 1 reply
  • 0 views

I own a C-store.  We purchase cigs from a vendor.  The tobacco company sets the price that we sell them at, which is below what we pay for them.  The tobacco company then sends us a check monthly to cover the difference.  How do I categorize that payment?

1 reply

Rainflurry
Rainflurry
October 10, 2023

@kellihotard 

 

I think in this case, you can record it either as income or assign the deposit/payment to COGS.  Either way (whether you increase your income or reduce your COGS), your net income will be the same.  It's really up to you and how you want to see it shown on your P&L.  

Terms & ConditionsAccessibility statement