Pharmaceutical company marketing

Pharmaceutical company market there product by giving the gift to doctor so the traveling expenses , food expense and other related expenses incurred by company to distribute gift for marketing is recorded as
and does the cost of food,traveling is added to the cost of gift ,which standard deal with these type of problem
Replies (3)
Quick Summary
This discussion explores how pharmaceutical companies account for expenses related to marketing products, particularly gifts given to doctors. It delves into whether travel and food costs associated with gift distribution should be capitalised into the gift's cost or treated as separate expenses. The conversation touches upon revenue recognition standards and the classification of these costs, with a suggestion that 'travelling expenses' might be more tax-advantageous than 'sales promotion expense'.

Revenue recognition in Indas deals with this. I can't remember from as. 

Dr. Distribution expense 

Cr. Inventory 

If the company is paying wages to travel and food, this is a common expense. If special rounds are made just to deliver this, you can journaliste it as 

Dr. Distribution expenses 

Cr. Inventory 

Cr. Bank. 

 

 

Means the travel expenses is recorded as sale promotion expense not as traveling expenses ??

Travelling expenses is better because it is tax deductible

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details