Where do I enter comped customers meals?
Where do I enter comped customer meals so it reflects properly on my P&L. My bookkeeper has it coming out of my expenses is that correct?
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10/09/09 2:04pm PDT
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Allstar
Advisory council of community power users.
10/27/09 3:31pm PDT
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Hi there,
Is this a restaurant? It should be recorded as a sales receipt, to product "comped meals" or similiar and the account should be an income account-for comped meals. The amount would be entered as zero and the P & L will show zero always however the value would be recorded as the purchase price of the goods required to make the meal-which is taxable in some states-and governed by the laws in your state.
Or are you referring to taking customers out to dinner and paying for their meal? In this case, yes,it is an expense-meals and entertainment type account.
--I hope you find this post helpful--
We cannot hold a torch to light another's path without brightening our own. ~Ben Sweetland
We cannot hold a torch to light another's path without brightening our own. ~Ben Sweetland
