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Free goods

28 September 2009 1,375 views One Comment

Hi All,

I would  like to know what the best treatment for Free Goods offerd from a supplier to a retail pharmaceutical company . Actulay the offer is presented in two types :

1- implicit in the vendor invoice as an additioanl free quantity with a 0 value , means the invoice contain both priced goods with $ value and additional free goods with 0 value.

2- Seprate free shipment with a total 0 value invoice.

Please advice the accounting treatment for this case.?

Thanks

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One Comment »

  • riyer said:

    you will have apportion invoice amount over the number of goods (including the free goods). Nothing comes for free my friend.

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