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
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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

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