Is a markup booked as revenue?
If I cover an expense for a client and charge them a markup, will that markup be considered revenue or should it be booked against the expense acct upon payment?
Update:This is for a law firm.
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Answers & Comments
Without a listing of your accounts, this can be no more than a guess. I have only taken Financial Accounting classes. Mind you, I did get an A. Its not an expense of your business its an expense of your service. Therefore, I would add it to your assets services account and transfer it to revenue when it was paid. The cost will be expensed in the cost of goods sold at that time.