COGS Accounting for Giveaways
Hi, I am interested in learning how others are handling accounting for gratis items. Our sales reps frequently add free items to the sales order. These are regular skus, not promotional items. We currently use a Discount sku to handle adjusting the sale amount but what we really want to capture and place into a separate GL account is the COGS for the free items being given away. Thanks in advance for any feedback.
New Item that hits GL account Product Samples or something similar – and begin the first word of the item with “Free”+item name/number
Thanks for sharing. I wish it were that easy for us, but since all products are fair targets for gratis, it would require duplicating the entire catalog.
