Over the last 5 weeks I have run a promotion (competition draw) on my facebook page to reward frontline workers during the current Covid-19 epidemic with one of my products each free. Their is no cost to any individual entering. I understand the costs to me can only be recorded “at cost”, with each item costing approx’ £15. What is the best way, and how do I record these gifts.
Just create a new expense nominal and call it promotional gifts or something similar and tag the product purchase to that.
Thanks for that. I think I need to clarify a bit. I make products that utilise various materials from a number of suppliers. It not possible to attribute purchases with the ‘Gift’ tag as I’m only using a portion of the purchases in the manufacture of each gift. Is there a way to record these as an expense for their cost price although their is no actual financial transaction.
The easiest way. Would be to create a journal and move the cost price amount from your purchase nominal to a promotion nominal.
What this does is reduce one and increase the other. Can’t increase one without decreasing the other or in affect you claim the cost twice.
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