Discount code


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Hi,

If I am the agent in a principal agent relationship, and the principal sells products on my e-commerce platform, how should I recognise my revenue if discount to products are provided by my platform?

Can I recognise it on a net basis or I have to recognise it as an expense?
 
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So who is providing the discount...out of whose pocket is the discount coming from? Give an example.
 
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Joined
Mar 28, 2018
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0
Country
Singapore
So who is providing the discount...out of whose pocket is the discount coming from? Give an example.
Hi,

The discount is coming from my pocket (agent).

Example, principal selling item at $100. Customer applies a promo code of $10 off from selling price. So net amount paid is $90.

As I am earning a 30% commission from the item price ($100), which amounts to $30 commission revenue, how will the promo code of $10 be recognised?

Separately or as a net revenue, I.e. $20 under revenue line?
 

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