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Example of the Accounting for Ticketing & Misc. Recovery
A General Ledger account for Ticketing Recovery is available. If Ticketing and Miscellaneous cost recovery is in use, a GL account should be set up.
- List Selling Price = $1.00
- Discount to Customer = 10%
- Ticketing and Misc. Pricing Component = $0.10
- Net Price to the Customer = $0.90 ($1.00 less 10%)
- Effective Discount is 20% for discount testing as well as Commission and Royalty calculation purposes
(List Price of $1.00 less Selling Price of 0.90 plus Ticketing & Misc. Pricing component of $0.10 compared with list price of $1.00)
($1.00 - 0.90 + 0.10 )/ 1.00 = 20% - Ticketing and Misc. Cost Component = $0.08
- Product Unit Cost = $0.50
- Consider a Sale of 480 units:
- Line Extension = 480 x $0.90 = $432.00
- Ticketing Component included in Price = 480 x $0.10 = $48.00 (this has no account impact)
- Product Cost = 480 x $0.50 = $240.00
- Ticketing Cost = 480 x $0.08 = $38.40
- Total Cost of Sales = $278.40 (=$240.00 + $38.40)
GL entries resulting from the Sale:
| GL Account | Debit | Credit |
| Accounts Receivable | 432.00 | |
| Sales | 432.00 | |
| Cost of Sales | 278.40 | |
| Inventory | 240.00 | |
| Ticketing Cost Recovery | 38.40 |
