My client runs a weekly contest program that gives winning customers their choice of up to 10 products as long as the total cost is less then $500. The winners list their product choices in the online contest and it is picked, packed, and waiting for them at the local store.
The store clerks earn commission on the amount of product they can push through their store. In order to have this promotional contest work every week to both gain customer loyalty and reward store clerks for promoting the stores, the management wants to also include the value of the items for the winner in the stores total sales. At the end of the month the store clerks will be paid their commission on the total store volume (including the promotional contest items), even though no funds were collected for the promotional items.
To this end they would like some alternative form of payment that can be used in the POS system or sales invoice to allow the transactions to be counted as actual sales. The separated report of payments at the end of the month would then be used to add a single entry to the ledger to reflect the total promotional transactions as an expense to the company (either cost of sales or some promotional expense account for advertising).
I am looking for ways to handle this kind of situation. Any ideas? Essentially this would look like a pre-paid transaction but there is no actual funds because it will be expensed at the end of the month.