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    terirow's Avatar
    terirow Posts: 1, Reputation: 1
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    #1

    Jul 18, 2011, 04:45 PM
    Accounting questions help?
    I need help with a new area of business. We sell services for which we do the work. We have a customer that wanted a different service than what we provide, so we played the middleman and hired a consultant to do the work for them and marked it up slightly for "Management Fee" - we only recognized the management fee as our revenue. We have a new scenario, where we have a client who wants something more enhanced than we can provide, so we provide our data to a consultant, who then uses it to create a report for the client. We are only getting a 29% take of the deal, do we recognize the full revenue and book the expense, or just recognize the 29% as revenue?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Jul 19, 2011, 07:12 AM

    Are you collecting the full fee and then paying the consultant?
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