USA Energy Rebates

[dkeelan]

My company sold a project to a customer that earned a rebate from the local utility. The customer assigned the rebate to my company and asked us to reduce the amount of the project price by the amount of the guaranteed rebate. Ie: Project Cost: $100,000, Rebate $50,000, Net cost to customer $50,000

The local utility has provided a letter authorizing the $50,000 rebate and its assignment to my company.

Although payment is coming from two sources all parties (company, customer, utility) are in agreement with the project cost and goals. All paperwork generated for the sale includes references to the approval/authorization number provided by the utility.

Question: When we book the sale internally do we book it at $50,000 or $100,000?

If you offer an answer can you reference the source for the basis of your answer - not necessary but helpful.

Thankyou

 

[kirby]

Facts are that you sold for $100K and were paid $50K, with a slight twist that the purchaser received the $50K payment from some other organization. So, it is still just a normal $100k sale. Might have been different if your own company offered the rebate.

 

[ashakantaxharma]

Yes Sale will be shows for $100,000 along with we also have take into account Rebate Received for $50,000.

 

[bklynboy]

You were paid 100K and agreed to accept 50K cash from customer and rebate from utility of 50K to cover the cost. Sale is still 100K