Are reimbursement of costs by the customer considered revenue (would you present revenue and costs of revenue gross or net)?
Reimbursement of costs
All Replies
Viewing 1 replies (of 1 total)
- You must be logged in to reply to this topic.
If the costs were incurred by the company as part of its obligations to the customer, and the company is the principal, then the reimbursement would be considered revenue and should be presented gross. If the company paid a 3rd party on behalf of the customer (acted as an agent), it shouldn’t present the reimbursement as revenue.