Ask Experts Questions for FREE Help !
Ask
    Reneejh's Avatar
    Reneejh Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 8, 2007, 01:52 PM
    Commission Expense
    We have a complex commission plan. Our commissions for installation are paid 50% up front and 50% when the job is complete. We have 3 year maintenance contracts for which commissions are paid up front.

    Should we be expensing all of the commissions up front for installations and spreading the expense over 3 years for maintenance?

    Thanks
    LegalEagle1's Avatar
    LegalEagle1 Posts: 17, Reputation: -2
    New Member
    		  
    #2

    Feb 18, 2011, 10:05 PM
    You should expense commissions when you pay them out.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Pension expense [ 1 Answers ]

Is this the correct way to determine pension expense? Service cost + interest cost - actual return on plan assets

Is Realtor entitled to Commission [ 7 Answers ]

Contract with Realtor expired. I advertised and conducted my own open house. A few days later, I resigned with Realtor - excluding 2 couples (that I showed the house to). At time of resigning Realtor told me that the couples had 2 weeks to put in an offer. Timeframe is not on the contract but the...

Capital expense [ 2 Answers ]

Is the expense for developing a patent a capital expense? Would it still be a capital expense if I acquired it vs. developed it?

Tax on Affiliate Commission [ 3 Answers ]

I am an Indian citizen living in India and earning through Affiliate Marketing. I want to know about payment made to me through Clickbank towards Affiliate Commission. What are the formalities so that no part of my commission income is withheld by the IRS ? Clickbank is asking for W-8BEN....

Taxation for affiliate commission [ 1 Answers ]

Hi, I am an MBA student from Thailand and now I am studying an MBA in San Francisco. I earn some money from the internet. I am promoting some merchant websites through Google Adwords. When some visitors buy products that I am promoting, I get paid commission. The problem is that 1. I am not a...

View more questions Search