Promo code used in e-commerce

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ahbun
Posts: 6
Joined: 28 Jun 2021, 10:49

Promo code used in e-commerce

Post by ahbun »

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?
Leo
Posts: 544
Joined: 05 Apr 2020, 22:31

Re: Promo code used in e-commerce

Post by Leo »

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.
JRSB
Trusted Expert
Posts: 868
Joined: 01 Mar 2020, 01:10
Location: UK

Re: Promo code used in e-commerce

Post by JRSB »

sounds like something you can't 'carry forward', you just get 10$ off when you buy? so I'd just reduce revenue , yeah
ahbun
Posts: 6
Joined: 28 Jun 2021, 10:49

Re: Promo code used in e-commerce

Post by ahbun »

Thanks all for your view.
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