Skip to main content
D
DjTrex
November 22, 2023
Question

Restaurant: Recording a customer refund from a Food Delivery Service

  • November 22, 2023
  • 1 reply
  • 0 views

We have a restaurant that uses GrubHub/UberEats/DoorDash. Each of these services send a weekly report with line items for total sales and then deductions for fees and refunds. We have been recording refunds as discounts and comps in an Advertising Expense account but i'm thinking this might not be correct. Should refunds be an (offset) to the income: sales account or should we keep it in an Expense account?  

 

1 reply

Rainflurry
Rainflurry
November 22, 2023

@DjTrex 

 

How you classify them is really up to you.  In any case, whether you classify them as a reduction in revenue, discounts, or expenses, they have the same effect on net income which is the most important part.  IMO, refunds are a reduction in revenue (or a discount) and the comps are an expense.  Do what makes the most sense for your business and how you would like to track these costs on your P&L, reports, etc.    

Terms & ConditionsAccessibility statement