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3rd Party Vendor Reimbursement of Marketing Expense

One of our product vendors (inventory product) -( well-known vendor in US market) has agreed to reimburse a portion of trade show expenses if we highlight we use their product. they want us to invoice them for this and I wanted to know how other folks have treated this situation in the past. I believe this is not revenue but rather a contra-expense and simply plan to create a "pro-forma" invoice and then book the CR against marketing expense. Thank you.

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

I think your offset plan makes sense. You are paying the gross trade show costs and then receiving a reimbursement in part. Your real cost is the net.

RAJESH SUBBARAMAN
Title: Accounts Payable Analyst
Company: Juniper Networks India Pvt Ltd
(Accounts Payable Analyst, Juniper Networks India Pvt Ltd) |

Since the reimbursement portion of the trade show expenses by third party vendor should offset the marketing expenses. Real cost should be always be net.

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