Dictionary / Additional Mark-on
What does Additional Mark-on mean in accounting?
Quick definition
GeneralTerm in retail accounting signifying an addition to a previously established mark-on. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
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Examples
A second price hike on unsold planters
You run a garden shop. On March 3 you received 40 ceramic planters from a pottery supplier at $18 each and ticketed them at $36, the original mark-on. On April 12 that supplier's next lot invoices at $22, so you raise the 28 planters still on the floor to $44. The extra $8 is additional mark-on, not a new purchase and not a sale. Cost stays $18. If you keep merchandise inventory at retail, add $224 ($8 × 28) to the retail column; leave the cost column alone. Watch the retail inventory worksheet, not Sales. Gross margin on those planters is higher only after they sell.
Restoring a sale price is not additional mark-on
In January your boutique ticketed 16 wool coats from an apparel supplier at $220. In February you marked them down to $160 for a winter sale. On March 8 you restore the eight coats still on the rack to $220. That is a markdown cancellation, not additional mark-on. Additional mark-on only applies when you raise the selling price above the original ticket. Put the $60 restoration back into the retail inventory records as a markdown cancellation. Do not add it as extra mark-on or the retail method cost ratio will be off.
Why it matters
Additional mark-on is the extra you add after the original selling price is already set. You will not post this most months; it shows up when you raise tickets on unsold goods after a vendor cost increase, a seasonal rush, or a first price that was too low. If you use the retail method, that extra retail goes into the inventory records and changes the cost-to-retail ratio; skip it and book inventory at retail is too low, and treating a markdown cancellation as additional mark-on overstates retail. Raising the ticket is not a sale, so gross margin moves only when the item sells at the new price.
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What is Additional Mark-on in bookkeeping?
Term in retail accounting signifying an addition to a previously established mark-on.
When should I use Additional Mark-on?
Use Additional Mark-on when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Additional Mark-on?
Additional Mark-on is used for additional mark-on entries, while Abandonment covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.