# Principal versus agent

> Principal versus agent — Whether the entity controls a good or service before it passes to the customer — a principal reports revenue gross, an agent reports only its fee or commission net.

Source: https://lopifi.com/glossary/principal-versus-agent
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is principal versus agent?** In accounting, principal versus agent means whether the entity controls a good or service before it passes to the customer — a principal reports revenue gross, an agent reports only its fee or commission net.

## Words this system refuses for it

- gross-up

- **Category:** Revenue recognition
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** revenue