more-arw search

Q&A Forum

Vendor Fees?

The companies I have worked for have always been on the receiving end of fees from our customers for doing something incorrectly (wrong pallets, late delivery, ect), but I have never had the opportunity to take a deduction not directly related to the product sold. In the example of the wrong pallets being used, we used the wrong pallets and the customer is now short-paying an invoice.

Is the deduction taken by the customer being realized as revenue or as discount on the goods sold?

Thank you.


Maqsood Hassan
Title: Manager Tax
Company: Rafiq Spinning Mills (Pvt.) Limited
(Manager Tax, Rafiq Spinning Mills (Pvt.) Limited) |

Such deduction is never a discount. It is a penalty. Accounting treatment will be the same but criteria is different.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.