Breakage (accounting)

Breakage (accounting) is a way of handling money that is owed to people, but has not been paid out. In accounting, breakage is when you still have money that has not been paid out, but you book it as income anyway. For example, say you have a gift card that you never use. The store that sold you the gift card is still owed the money from the card, but they haven't been paid yet. If they book the money they are owed on the gift card as breakage, they can still list it as income, even though the money hasn't been paid out yet.