Hi,
If Company A is carrying out a one month marketing campaign by offering $10 promo code to customer who purchased any product online. This promo code can be applied upon check out page when customer make payment. Does this consider a reduction to the revenue or can this be seen as marketing expenses given that this is just a short term campaign to create customer awareness and branding?
Promo code used in e-commerce
Re: Promo code used in e-commerce
I'd say similar to loyalty points, for which you record a contract liability instead of revenue and reduce it when used ? So less revenue.
Re: Promo code used in e-commerce
sounds like something you can't 'carry forward', you just get 10$ off when you buy? so I'd just reduce revenue , yeah
Re: Promo code used in e-commerce
Thanks all for your view.