Postage and listing fees = expense or cost of sales?

kellyriddell

Just a quick question that has dumfounded me somewhat! I previously posted a thread concerning a friend whom was going to do an ebay shop aswell as being a sole trader, now they have sold their first product. Through ebay you have to pay a listing fee aswell as the postage my question is does this figure go into the sales day book as a debit which then be known as a cost of sale located at the top of the P and L account or do we create postage and insertion fee expense account? I think it will be classed as cost of sale, though a friend thinks itll be an expense account......though now I'm swaying more to expense! Any advise?

Thanks x

Bluewednesday

Officially it's a cost of sale but as long as you are consistent with what how you treat it, it shouldn't really matter.

blobbyh

As it can be directly attributed to the cost of a sale, that's where I'd lump it and leave the expense account for the usual run of the mill stuff such as posting of letters, statements etc...