Staff Discounts

Where should it sit in P&L?

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Where do you sit staff discounts in the P&L?

Do you net sales down by the amount or do you gross up sales and then have a separate line for staff discounts? Ideally I would like to identify staff discounts separately but I believe they should sit under sales. If I have a gross sales discounts and net sales for management purposes is this correct as long as from a financial reporting perspective the discounts sit under Sales.

 

We use FRS 105 for reporting.

Thanks,

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By paul.benny
02nd Jan 2024 17:49

Agree with your approach.

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By tom123
03rd Jan 2024 08:36

You can have as much detail as you like in management accounts - indeed if your management accounts only have the same categories as statutory accounts do they are probably useless...

Always better to have more analysis rather than less - there is nothing worse than trying to unpick one larger nominal ledger and make it into two separate balances.

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