Where should a vendor rebate I receive go on my income statement? Revenue or COGS reduction?
(President) | Jul 5, 2013
I currently show a revenue line on my income statement line for "Vendor rebates." I see GAAP guidance that VENDORS should record rebates as a reduction in their sales prices, but how should those of us receiving them record them? Should I offset my COGS by the rebate received, or just show it as its own revenue account?