Tender fee (refundable and non refundable)

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Ravi

Ravi (Querist)
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23 January 2022 What will be the entry of Refundable and non refundable tender fees.?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Sure! Here's how you can account for **refundable** and **non-refundable** tender fees:

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### 1. **Non-Refundable Tender Fee**

* This is an expense to participate in the tender process and is **not recoverable**.
* **Accounting entry when tender fee is paid:**

```
Tender Fee Expense A/c Dr.
To Bank/Cash A/c
```

* Since this is a cost, it will be charged to the Profit & Loss account.

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### 2. **Refundable Tender Fee**

* This is an **advance deposit** or a security deposit paid to participate in the tender and is **refundable** if the tender is not won or after completion.
* **Accounting entry when tender fee is paid:**

```
Tender Fee Deposit (Current Asset) A/c Dr.
To Bank/Cash A/c
```

* When the refundable tender fee is **refunded back** to you:

```
Bank/Cash A/c Dr.
To Tender Fee Deposit A/c
```

* If the tender fee becomes non-refundable (e.g., tender not successful or forfeited), it is treated as an expense:

```
Tender Fee Expense A/c Dr.
To Tender Fee Deposit A/c
```

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### Summary Table

| Tender Fee Type | At Payment | On Refund | On Forfeiture/Non-recovery |
| ------------------ | -------------------------------- | ------------------------------- | ---------------------------------------- |
| **Non-Refundable** | Debit Tender Fee Expense | N/A | N/A |
| **Refundable** | Debit Tender Fee Deposit (Asset) | Debit Bank/Cash; Credit Deposit | Debit Tender Fee Expense; Credit Deposit |

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