Sub-Consultant Cost Passed Through to Client (at Cost)
Billing the client exactly the sub-consultant's cost with no markup as a direct recharge.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Sub-Consultant Recharge) | Asset (+) | 8,000.00 | - |
| Sub-Consultant Revenue (Pass-Through) | Revenue (+) | - | 8,000.00 |
💡 Accountant's Note
Where the contract specifies pass-through at cost with no margin, the firm is acting as an agent for the specific sub-service. Under IFRS 15, if the firm is principal (controls the sub's output), gross revenue is recognized. If agent, only the margin is revenue. Pass-through at cost with no markup typically results in agent treatment and zero net margin on this line.
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