Telecommunications

Dealer Commission — Subscriber Acquisition

Paying a retailer or dealer a commission for activating a new postpaid subscriber.

Account NameTypeDebit ($)Credit ($)
Subscriber Acquisition Cost (Expense)Expense (+)35.00-
Commissions Payable (Dealer)Liability (+)-35.00

💡 Accountant's Note

Dealer commissions are a major component of subscriber acquisition cost (SAC). They may be expensed immediately or capitalized as contract costs under IFRS 15 if incremental and recoverable.

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