Cost of free sample
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 November 2011
We are selling electricals goods.. often we need to give free samples to various dealers/architech etc., we are raising an invoice for Re.1 and send the material as we cannot raised 0 value invoice..
Here ny question is since all these activities are to cover the market and increase our sales.. It is nothing but advertisment and promotion... Hence should we charge those cost of the material (which was given as free sample) into Sales promotion expenditure??
If you have any other view please explain..
Thanks in advance..
Here ny question is since all these activities are to cover the market and increase our sales.. It is nothing but advertisment and promotion... Hence should we charge those cost of the material (which was given as free sample) into Sales promotion expenditure??
If you have any other view please explain..
Thanks in advance..
17 November 2011
You can record the same as promotion expenses but for the same you will no need to raise invoice.
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