performance incentive

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C.A Alok Mukherjee (Querist)
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10 March 2010 We are a corporate entity belonging in dairy sector. Sometime when a scheme is in operation, on achievement of some target fixed, the distributors/retailers are given performance incentive. Can we classify this as "sales promotion" of expense in nature while booking the expense in accounts? what is your valued suggestion.

vrnanda

vrnanda (Expert)
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13 March 2010 Hi alok,

you can with no doubt, go ahead and classify it as a sales promotion expenses. even if u book the expenditure as a performance incentive, you need to goup under sales promotion in financial statemetns.