Dear Green Pen,

I supply newsagents 5,000 copies per issue. How do I account for them in my a CAB audit?

Optimistic
Melbourne, Victoria

Dear Optimistic,

A common misconception by CAB publisher members when preparing for their audit is that they can claim the entire supply to newsagents and other retail outlets in their average net distribution number.

This is not quite true, as it is the net position of the supply and return retail process that is included. ie your net sales.

Depending on the arrangement you have in place with your distributor to deal with unsold copies, you may be able to claim some if not all of your returns, as long as you redistribute them during the audit period. These copies will be listed in the category which best describes the redistribution method.

If you instruct your distributor to destroy your unsold copies you must list them as unaccounted for copies, which are excluded from your average net distribution.

Green Pen