We distribute samples for free but our partner wants to be paid 30% as revenue share as if the sample were actual sales. I usually account samples as distribution cost to be deducted from revenue however I do not know how to account for the Accounts payable of 30% to the partner.
Revenue sharing for samples
Answers
"...but our partners want to be paid 30% as REVENUE SHARE"
My inclination is a reduction of revenue through a separate account...ala Discount.
Wait....I just re-read your post...
1. 30% of what?
2. Aren't you already paying someone for the cost of the samples? hence you are treating it as a distribution cost?
"but our partner wants to be paid 30% as revenue share as if the sample were actual sales"
Your partner seems to think a sample is a sale. It isn't.
But if real sales you make result in them getting a 30% rev share, (is that share of sales or share of margin?), then I would deduct the cost of samples before calculating their 30% share. Samples help generate sales, I think.
I'm wondering how they will survive paying a 30% commission.... but glad that's not my deal....