Postage and listing fees = expense or cost of sales?

kellyriddell Registered Posts: 84 Regular contributor ⭐
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
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    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
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
    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...
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