Hi,
We have a number of clients for whom we pay a rebate based on volume of work delivered. Should this be a cost in the P&L or should we net it off against the associated revenue?
Thanks,
Craig
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Normally, we would offset the rebate against revenue in the same fashion as a discount allowed.
Some may show them in the same manner as commissions payable - in direct costs - but in my opinion it is a direct reduction in the value of the sale as opposed to a cost in relation to it
EDIT - you actually refer to it, in the title, as a 'discount'...