Retail Knowledge Center
Explore our verified library of Retail transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Provision for Inventory Obsolescence
Recording a reserve for stock that is unlikely to be sold due to damage or lack of demand.
Inventory Shrinkage (Theft/Error)
Adjusting inventory records after a physical count reveals a shortage compared to the system.
Sale of Consigned Goods
Recording revenue from selling goods that belong to another vendor.
Cash Discount on Purchase (2/10, n/30)
Recording the benefit of paying a vendor early to receive a cash discount.
Point-of-Sale (POS) Credit Card Sale
Recording a store sale where the bank takes a processing fee immediately.
Donation of Inventory (CSR)
Recording the removal of stock from inventory for charitable purposes.
Sales Discount Taken by Customer
Recording the reduction in cash received when a customer pays early (e.g., 2/10, n/30).
Sale of Customer Gift Cards
Recording the cash received from selling a gift card before it is used for a purchase.
Redemption of a Customer Gift Card
Recording revenue when a customer finally uses their gift card to buy something.
Year-End Inventory Shrinkage Adjustment
Adjusting the books when the physical stock count is lower than the system balance.
Inventory in Transit (FOB Shipping Point)
Recording inventory that is on the way but legally owned by the company during transit.
Cash Register Shortage
Adjusting for a discrepancy when the physical cash in the drawer is less than the POS report.
Sale of Inbound Consignment Goods
Selling an item that belongs to a vendor, where you only act as the agent.
Accruing a Vendor Volume Rebate
Recording a 'cash back' or credit note earned from a supplier for hitting a purchase target.
Physical Disposal of Obsolete Inventory
Removing items from the warehouse that were previously 'reserved' for obsolescence.
Customer Loyalty Points (Revenue Deferral)
Allocating a portion of a sale's price to the loyalty points earned by the customer.
Recovery of Inventory Write-Down (IFRS)
Increasing the value of inventory back to its original cost because the market price recovered.
Outbound Consignment Shipment
Moving inventory from your main warehouse to a dealer's showroom while still retaining ownership.
Redemption of Store Discount Coupon
Recording a sale where the customer uses a $10 discount coupon.
Gift Card 'Breakage' (Unredeemed Revenue)
Recognizing revenue from gift cards that are highly unlikely to ever be redeemed based on historical data.
Return of Defective Goods to Supplier
Recording a credit note from a supplier after returning damaged inventory.
Settlement Payout to Consignor
Paying a vendor for the goods they owned that were sold in your store last month.
Mystery Shopper Fee & Reimbursement
Recording the cost of an audit where a 'mystery shopper' is paid a fee plus the cost of the goods they bought.
Cash Sale at POS (No Card)
Recording a straightforward over-the-counter cash sale.
Debit Card Sale at POS
Recording a sale paid by debit card where the bank settles the same day.
Contactless / Apple Pay / Samsung Pay Sale
Recording a tap-to-pay transaction at a contactless-enabled POS terminal.
Split Payment — Cash and Card
A customer pays part of their bill in cash and the rest on a credit card.
Layaway Plan — Deposit Received
A customer puts an item on layaway by paying a 20% deposit to reserve it.
Layaway — Final Payment and Revenue Recognition
Customer makes the final instalment, collects the item, and revenue is recognized.
Layaway Cancellation — Deposit Forfeited
Customer cancels their layaway after the forfeiture period and loses their deposit.
Trade-In Allowance on Purchase
A customer brings in an old item and receives a trade-in discount on a new product.
Wholesale / Bulk Sale to Business Customer
Selling a large quantity to a business customer at a negotiated wholesale price.
Buy Online, Pick Up In Store (BOPIS)
Customer orders online and pays upfront; revenue is recognized when they collect in store.
BOPIS — Customer Collects Item In Store
Recognizing revenue when the customer picks up their pre-paid online order.
Customer Account / House Account Sale
A VIP or corporate customer purchases on a store account settled monthly.
Customer Return — Full Cash Refund
A customer returns an item within the return policy window and receives a full cash refund.
Customer Return — Exchange for Different Item
Customer exchanges a returned item for a different product of the same value.
Customer Return — Store Credit Issued
Customer returns an item but chooses store credit instead of a cash refund.
Customer Return — Damaged Item (Not Restocked)
Customer returns a damaged item that cannot be resold.
Price Adjustment / Allowance (No Return)
Issuing a partial refund when a customer finds the same item cheaper elsewhere within the price-match window.
Sales Return Provision — End of Period
Estimating and provisioning for returns expected in the next period on current-period sales.
Warranty Exchange — No Charge to Customer
Replacing a faulty product under warranty at no cost to the customer.
Staff / Employee Discount Sale
Recording a sale where a staff member purchases goods at a 30% employee discount.
Senior Citizen / Loyalty Member Discount
Recording a sale with a permanent 10% discount for a loyalty programme member.
Bundle / Multi-Buy Promotion (3 for 2)
Customer buys three items in a 3-for-2 promotion, effectively getting one free.
Buy-One-Get-One-Free (BOGO) Sale
Customer buys one item at full price and receives a second identical item at no charge.
Clearance Sale — Markdown Below Cost
Selling end-of-season inventory at a price below cost to clear shelf space.
Seasonal Markdown — Inventory Write-Down
Writing down winter clothing inventory at season-end to its expected clearance sale price.
Promotional Gift With Purchase (GWP)
Giving a free promotional item to customers who spend over a threshold amount.
Flash Sale / Weekend Promotion Discount
Recording high-volume sales during a 24-hour flash sale at 40% off.
Referral Discount — New Customer First Purchase
Giving a new customer a 15% discount because they were referred by an existing customer.
Loyalty Points Earned — Revenue Deferral
Deferring a portion of revenue when a customer earns redeemable points on a purchase.
Loyalty Points Redeemed on Purchase
Customer uses accumulated points to get a discount on their next purchase.
Loyalty Points Breakage (Expired Points)
Recognizing revenue from loyalty points that have expired without being redeemed.
Gift Card — Partial Redemption with Cash Top-Up
Customer partially uses a gift card and pays the remaining balance in cash.
Store Credit Balance Issued to Customer
Issuing a store credit note to a customer instead of a cash refund.
Store Credit Redeemed on Purchase
Customer uses their store credit balance to pay for a new purchase.
Inventory Purchase — Cash Payment
Buying stock directly from a supplier with immediate cash payment.
Inventory Purchase — Credit Terms (30 days)
Receiving a stock delivery from a supplier on 30-day credit terms.
Goods Received — Quantity Discrepancy Claim
Raising a debit note when fewer units arrive than stated on the supplier's invoice.
Freight-In Capitalized into Inventory Cost
Adding inbound freight charges to the cost of delivered inventory.
Consignment Inventory — Outbound Shipment to Dealer
Sending goods to a dealer's showroom on consignment — ownership is retained by the store.
Inter-Store Inventory Transfer
Moving stock from a warehouse or flagship store to a branch with low inventory.
Drop-Shipment — Supplier Ships Directly to Customer
Recording a sale where the supplier ships directly and the store never holds the goods.
Advance Payment to Supplier for Future Stock
Paying a supplier in advance to secure a large seasonal stock order.
Supplier Advance Settled on Delivery
Offsetting the advance against the supplier invoice when goods are received.
COGS Recognition — Periodic Inventory System
Calculating and recording cost of goods sold at the end of a period using the periodic method.
COGS Recognition — Perpetual Inventory System (Per Sale)
Recognizing cost of goods sold at the point of each individual sale in a perpetual system.
Inventory NRV Write-Down
Writing down the value of inventory when net realizable value falls below cost.
Inventory Damage — Insurance Claim Receivable
Recording stock destroyed by flooding and the corresponding insurance claim.
Cycle Count Overage — Inventory Surplus
Adjusting the books when a physical count finds more inventory than the system shows.
Dead Stock Write-Off (Fully Obsolete)
Removing completely unsellable inventory from the books after exhausting all markdown options.
Monthly Store Rent — Prepaid Release
Recognizing one month of rent expense from a prepaid annual rent payment.
Store Utilities — Monthly Accrual
Estimating and accruing electricity and water costs before the bill arrives.
Store Cleaning & Maintenance Service
Monthly payment to a cleaning company and routine store maintenance.
Store Security System — Monthly Fee
Monthly monitoring subscription for the alarm system and CCTV.
Shopping Bags & Packaging Materials
Purchasing branded shopping bags, tissue paper, and boxes for customer purchases.
Store Signage & Display Materials
Printing seasonal promotional signage and window display materials.
In-Store Music Licensing Fee
Annual copyright license fee for playing background music in the retail store.
ATM / Cash Handling Service Fee
Paying the bank for cash counting, coin rolling, and change provision services.
Sales Floor Staff Monthly Payroll (Gross)
Recording the gross wage expense for all floor staff — sales associates, cashiers, supervisors.
Commission-Based Staff Payout
Paying monthly sales commissions to sales staff based on their individual sales targets achieved.
Part-Time / Seasonal Staff Wages
Recording wages for temporary staff hired for Ramadan and holiday shopping seasons.
SSC Employer Share — Retail Staff (Jordan)
Recording the employer's 14.25% SSC contribution for retail store employees.
EOSB Monthly Provision — Retail Staff (Jordan)
Accruing the end-of-service gratuity for permanent retail employees.
Staff Uniform Purchase
Buying branded polo shirts, aprons, and name badges for all store staff.
Staff Training & Development Cost
Paying for customer service, sales technique, and product knowledge training for store staff.
Store Fit-Out / Leasehold Improvement
Capitalizing the cost of fitting out a new store location — flooring, shelving, lighting.
Leasehold Improvement — Monthly Depreciation
Monthly depreciation charge on the store fit-out.
POS Terminal Purchase & Setup
Buying and setting up point-of-sale hardware for a new store.
POS Terminal Monthly Depreciation
Monthly depreciation on POS hardware.
Shelving & Display Fixtures Capitalization
Capitalizing the cost of branded shelving units, display cases, and gondolas.
Furniture & Equipment Monthly Depreciation
Monthly depreciation on store furniture, display cases, and shelving.
Store Renovation — Capital vs. Expense Decision
Repainting the store interior — expensed because it restores rather than enhances.
Fully Depreciated Fixture Write-Off
Removing old display shelving from the books when it is replaced after its useful life.
VAT Output on Retail Sales (Jordan 16%)
Summarizing total VAT collected on retail sales during the month for ISTD filing.
VAT Input on Inventory Purchases
Recording the recoverable VAT paid on inventory purchased from a registered supplier.
VAT Monthly Remittance to ISTD
Paying the net VAT liability to the ISTD by the filing deadline.
VAT Exempt Goods Sale (Zero-Rated)
Recording the sale of a product category exempt from sales tax in Jordan (e.g., basic foods).
Customs Duty on Imported Goods
Capitalizing customs duties into the cost of imported inventory.
Corporate Income Tax Provision
Accruing the year-end income tax on the store's taxable profit.
Municipality License & Trade Fee
Paying the annual commercial license and municipality fees to operate the retail store.
Withholding Tax on Rent — Individual Landlord (Jordan)
Deducting 5% WHT from rent paid to an individual (non-company) landlord.
Monthly Bank & POS Terminal Charges
Recording monthly bank account maintenance fees and POS terminal rental charges.
End-of-Day Cash Count and Bank Deposit
Transferring the day's cash takings from the store till to the bank night safe.
Bank Overdraft — Short-Term Working Capital
Using the store's overdraft facility to pay suppliers during a slow trading period.
Trade Finance / Inventory Credit Line Draw-Down
Drawing on a revolving inventory finance facility to fund a large seasonal stock purchase.
Supplier Invoice — Early Payment Discount Captured
Paying a supplier early within the discount window to capture a 2% settlement discount.
FX Loss on USD-Priced Imported Goods
Recording a foreign exchange loss when the JOD weakens between the supplier invoice date and payment date.
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