Readers' forum : Profit and loss

Company A supplies customers to company B which in turn provides a service to them. Company A collects payment from the customer and then deducts commission from this before paying company B for its services.

Company B would like to gross up the amount received from company A to declare the true value of its service as if it had dealt with the customer directly. Company B will then reflect the commission in its profit and loss account each month.

This would entail company A still taking a 10% commission from £100 and sending company B £90. Company B would still receive £90 of revenue but then add the £10 taken by company A to declare revenue of £100. Then it would add the £10 to its commission column in its monthly profit and loss account as a cost of sale.

My question is whether company B needs to...