[GNC] The correct way to account for prepaid things that comes with bonuses

[davidcousens49 at gmail.com]

Mattio,

Since you receive the discount at the time you purchase the pack and it is
available to you at that point so that is really the point at which I would
record it. 

David

On Mon, 2021-12-06 at 23:02 +0100, Mattia Rizzolo wrote:
> Hi David, Gyle.
> 
> Thank you for your input.  It looks both of you agree that this should
> be a negative expense rather than in income.
> 
> On Tue, Dec 07, 2021 at 06:35:22AM +1000, davidcousens49 at gmail.com wrote:
> > This would allow you to keep track on
> > both the original expense and the economic benefit you receive by the bulk
> > purchase
> 
> Good point, indeed.
> 
> > However if your jurisdiction were to tax such discounts, treating it as
> > income
> > will likely be more appropriate. It is really the tax treatment which
> > decides
> > how best to account for it.
> > If you are unsure consult an accountant in your jurisdiction.
> 
> This book is for personal porpuses, and in any case that purchase is
> done for me, rather than for my business.
> I'm not sure about the tax implication of such bonuses for business, but
> for people it's not taxable (I'm sure here!), so marking it down as a
> negative expense is fine here.
> 
> Regardless, then, another question that I didn't consider it earlier.
> The negative charge in that's going to be Expenses:Travel:Rental: should
> it be credited in bulk at the time of the purchase of the pack, or
> somehow split over multiple accounting periods?  If yes, how would I go
> about splitting this?
> 
> 
> Thanks again for your help! :)
> 
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