Advertising and Promotion
Also called: Marketing Expense
Facebook ads, banners, brochures, travel fair stalls and sponsorships, on the Profit and Loss statement.
In detail
Advertising and Promotion takes the cost of winning customers: Facebook and Google ads, printed brochures and banners, trade fair stalls, sponsorships and agency fees. Post each spend with the Marketing - YFF cost center so the marketing budget can be compared with the sales it produced. Online ads bought from foreign platforms by card come without a Nepali VAT bill, and the auditor should be told about them because tax on such imported digital services may apply. A local agency's bill carries 13 percent VAT, claimable, and may attract TDS as a service or contract payment. Seasonal campaigns like Dashain packages can be tracked with a Budget on the cost center.
Formula
Advertising and Promotion for the period = Ad spend + Print and event costs + Agency fees, net of claimable VAT
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Advertising and Promotion | Rs 15,000 | |
| Bank Account | Rs 15,000 |
How to record it in BRAccount
- 01Go to Invoicing > Journal Entry > New for card payments to online platforms, or Buying > Purchase Invoice for an agency.
- 02Debit Advertising and Promotion with cost center Marketing - YFF and credit the bank or Creditors.
- 03Attach the ad receipt or agency bill and submit. The entry below posts.
- 04Set a Budget under Invoicing > Budget for the cost center to watch campaign spend.
- 05Review the figure beside sales on Financial Reports > Profit and Loss Statement with the Cost Center filter.
When to use it
Post by Purchase Invoice or Payment Entry, usually to the Marketing - YFF cost center, so the marketing budget report stays accurate.
Example from the demo books
Dr Advertising and Promotion Rs 15,000, Cr Bank Account Rs 15,000 for Facebook ads promoting Dashain tour packages, cost center Marketing - YFF.