Software: #QuickBooks #accounting software
A cooperative advertising is a sharing of advertising cost between you, the reseller, and the supplier (either the manufacturer or the wholesaler). Some businesses may call this as a marketing fund.
Record the bill from the advertising company with the Advertising and Promotion expense account. You have to select the supplier in the “Customer:Job” column, which you have created as a customer type. By default, the “Billable” checkbox is checked, this allows the cost to be transferred to the sales invoice later.
When you create the sales invoice to the customer who has tagged in the bill, QuickBooks will prompt to add the outstanding billable time and cost. If you opt to add a markup to the cost incurred, it will post to the relevant income account that you have set.
Generally, if the supply is made and the tax invoice is issued to you, the subsequent billing by you will be considered as reimbursement and treated as a separate supply of services. You will have to charge GST.
– IRAS –
The journal behind the sales invoice is debit the Accounts Receivable and credit the expense account. This sales invoice contra the Advertising and Promotion expenses, which you have entered in the bill earlier.
Alternatively, you may consider invoicing the supplier with an item, which associated with the other income account, instead of contra the expense. In this case, you will see both the other income and the expense in the profit and loss report.