Delivery Expenses to Customers
tauq786x
Registered Posts: 35 Regular contributor ⭐
I just realised that the Delivery Expenses to Customers is actually a CARRIAGE OUT and should have been used to calculate Cost of Sales. I however put it in the Expenses section of the P&L... AM I GONNA FAIL:crying:???
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Comments
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Don't think you're the only one! Hopefully not a fail!?0
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Doesn't carriage *inwards* only class as cost of sales?
Very sure it does... ya know just the same as delievery expenses to your premises count towards cost of a fixed asset?
Outwards is an expense. 100%.0 -
Doesn't carriage *inwards* only class as cost of sales?
Very sure it does... ya know just the same as delievery expenses to your premises count towards cost of a fixed asset?
Outwards is an expense. 100%.
Bugger! I included it in the Cost of Sales ..... just checked my notes and they class it as a normal expense.0 -
just checked on my proforma P & L in the back of my osborne book and Carriage outwards is listed as an overhead or expense.
Carriage inwards is used to calculate cost of sales.
Phew I was worrying for a while as I had put it as an expense and was wondering after a few comments.
These forums are a bit dangerous you come on confident you have only made a few errors then slowly doubt yourself more and more.0 -
delivery expenses is not cost sales
i do not believe but if you saying delivery expenses is cost of sales than it is0 -
Delivery expenses in (carriage inwards) is a cost of sales, delivery expenses out (carriage outwards) is an expense. mohmedsalim - why did you post this if you don't believe what people are saying!You would not fail if you got one thing wrong - you just have to show you are competant0
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Question Says
Question Does Say That We Paid Delivery Expenses On Behalf Of Customers If You See Page 75 It Does Explain The Terms Os Carriage In /out And How To Treat Them.0 -
MOHMEDSALIM PATEL wrote: »Question Does Say That We Paid Delivery Expenses On Behalf Of Customers If You See Page 75 It Does Explain The Terms Os Carriage In /out And How To Treat Them.
so where should it have been? cogs or expense?:confused1:0 -
Hi Everyone,
I have just started the Advanced level a month ago and have just sat my IAC exam...but what I have been taught...
If you are paying the delivery cost for your customer it is an expenses and it goes as an expense to the P&L.
If you paying for the delivery cost for the goods you are buying.. You add it up to the purchases so it goes to the cost of sales in P&L..
I might be wrong....:001_unsure: so correct me anyone if I am..
but this is what I have been taught :confused1:0 -
Well if the AAT meant 'delivery expenses on behalf of customers' to mean 'Carriage In', it sure is a very odd way of saying it. Seems like we have to decipher what's in their heads now as well as remember techniques, definitions and formulae.
Referring to 'our customers' suggests a SALE which could only be Carriage Out (Expense to P&L)
I took it as an expense as many others did.0
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