Fixed asset question

mini_schnauzer

Hello

We have some scientific equipment (entered as a fixed asset) that has to have a yearly calibration to ensure that the equipment is inline with the BSI standards etc for scientific measurements.

We have had the first calbriation at a cost of over £350. Does the calibration cost go as a business expense or add to the fixed asset?

I'm thinking business expense, but just want to check.

Monsoon

I would have thought this counts as running expenses/repairs/maintenance and is therefore revenue not capital.

The initial calibration cost (if there was one) would be capitalised, as it's getting the asset ready for use, but subsequent costs are just running expenses, same as getting your car serviced.

burg

Monsoon wrote: »

I would have thought this counts as running expenses/repairs/maintenance and is therefore revenue not capital.

The initial calibration cost (if there was one) would be capitalised, as it's getting the asset ready for use, but subsequent costs are just running expenses, same as getting your car serviced.

Agree! Most definitely a maintenance cost

mini_schnauzer

Many thanks for your quick replies.

lorraine

so would that be under code 7800 in sage or there abouts??? just wanted to double check my thinking!

burg

yes there abouts