Assume a TV broadcaster pays an advertising salesperson $XXX in December for selling an advertisiment that will air in January. (the commish is earned by the sales rep when sold). Should the commission be expensed in December, or booked as a deferred charge and expensed when the ad runs?
Commission accounting - I should know this.
Feb 18, 2007
1 Replies
wrote
It's going to depend on what your accounting method is. If you book the revenues when the ad airs (regardless of when that revenue is received), then book the corresponding commission expense at that time (regardless of when you pay the commission).
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required