Results 1 to 3 of 3

Thread: ACCOUNTING FOR PROMOTIONAL SALES

  1. #1
    Email problem
    Join Date
    Nov 2011
    Location
    johannesburg
    Posts
    2
    Thanks
    0
    Thanked 2 Times in 1 Post

    ACCOUNTING FOR PROMOTIONAL SALES

    A company, non-VAT registered at the moment, performs free services for first time clients or gives away products.

    1. How does one account for this in Pastel?
    a) All stock purchased expensed on purchase.

    b) What would be the vat implications upon registration, as one would claim the input on purchases?

    Thanks

  2. #2
    Diamond Member Neville Bailey's Avatar
    Join Date
    Nov 2010
    Location
    Westville, Durban
    Posts
    2,760
    Thanks
    44
    Thanked 451 Times in 396 Posts
    Quote Originally Posted by CHERYL1962 View Post
    1. How does one account for this in Pastel?
    If you are using inventory item codes (service or physical) for the billing of the services and/or products, then process the line items on the invoice in the usual manner, but capture a unit selling price of zero. If you are using physical item codes and you have inventory integrated to the general ledger, then the stock movement on the free sale will be accounted for, at cost.

    If you are using general ledger codes for the billing, then simply capture the line items as usual but with a zero value.
    Neville Bailey - Sage Pastel Accounting Consultant
    www.accountingsoftwaresupport.co.za
    neville@accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

  3. #3
    Gold Member
    Join Date
    Mar 2012
    Location
    Vanderbijlpark
    Posts
    886
    Thanks
    83
    Thanked 381 Times in 298 Posts
    Quote Originally Posted by CHERYL1962 View Post
    A company, non-VAT registered at the moment, performs free services for first time clients or gives away products.

    1. How does one account for this in Pastel?
    a) All stock purchased expensed on purchase.

    b) What would be the vat implications upon registration, as one would claim the input on purchases?

    Thanks
    Generally speaking, there is little point in registering for VAT. You can only claim input credits incurred in making taxable supplies. If you are not making these, then there is no point. Secondly, do your taxable supplies even exceed the minimum threshold?

    If you have a mix, then you have to apportion your claim accordingly. I personally wouldn't want to be saddled with task.

Similar Threads

  1. little sales
    By murdock in forum General Business Forum
    Replies: 8
    Last Post: 14-Jul-12, 04:56 PM
  2. [Question] Cost of sales
    By AmithS in forum Entrepreneurship and Business Management Forum
    Replies: 1
    Last Post: 14-Sep-11, 05:33 AM
  3. Looking for a Sales Manager
    By Fitness freak in forum Marketing Forum
    Replies: 2
    Last Post: 29-Oct-09, 09:40 PM
  4. Promotional Query
    By Kakerlak in forum Marketing Forum
    Replies: 0
    Last Post: 02-Oct-09, 10:35 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •