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Former Member

Sample Sale accounting entry

Hi experts,

what should be the accounting entries when we are doing a sample sales (providing free of cost sample goods to customer as a sales promotion activity)?

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    Former Member
    Sep 17, 2008 at 07:01 AM

    Dear TS,

    In Sample sales accounting entries will takes place as like normal postings but there will not be any out standinding on behalf of cutomer because this comes under 100% discount.

    You need to use R100 - 100% discount condition type in your pricing procedure to give the samples at free of cost.

    So all product price value will be posted to deduction(Discount) account there will not be any revenue i.e postings will not happen to Revenue account.

    If tax is applicable that posted as normal posting.

    I hope this will help you,

    Regards,

    Murali.

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    • Former Member Former Member

      Hi,

      A sample sale should be a free of charge sale, and normally in this type of scenario you would have the normal selling price followed by an immediate 100% discount so that the net value is 0.

      Now, you need to define how the company wants to report on this.

      Revenue account for this transaction should be 0. Output tax account should also be 0.

      Your cost account should be updated with the material cost.

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    Former Member
    Sep 17, 2008 at 06:57 AM

    Dear TS,

    As this is a free sale , no accounting entry will be passed except duty debit from your PLA account.

    saravanan

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    Former Member
    Sep 17, 2008 at 07:01 AM

    HI,

    Normally it depends on client requirements. U can define all the sales revenue as discount (100%) discount or u can create Proforma Invoice only accounting entries are genrated at time of delivery only.

    What Client requirement is important.

    Regards,

    PM

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