Sample Sale accounting entry
what should be the accounting entries when we are doing a sample sales (providing free of cost sample goods to customer as a sales promotion activity)?
Murali Mohan replied
In Sample sales accounting entries will takes place as like normal postings but there will not be any out standinding on behalf of cutomer because this comes under 100% discount.
You need to use R100 - 100% discount condition type in your pricing procedure to give the samples at free of cost.
So all product price value will be posted to deduction(Discount) account there will not be any revenue i.e postings will not happen to Revenue account.
If tax is applicable that posted as normal posting.
I hope this will help you,