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NaturesTable
Level 1

How to categorize Product Samples expense (which category)?

I'm confused as to what category would product samples fall under? Is it Supplies/Promotional or Advertising/Promotional? Or do I create my own category for this? It's just purely for expense purposes (I don't need to worry about the inventory).

 

Thanks for your help!

1 Comment 1
asha_kanta_sharma
Level 6

How to categorize Product Samples expense (which category)?

Depending upon the circumstances i.e. Scheme Offer for Free Sample, Promotional Free Samples, you can create different accounts to account them. If it is offered as a scheme at the time of sales then it will be considered as Direct Expenses and on the other hand if it is being given as Advertisement Expenses then it need to be classified as an Indirect Expense.