Inventory Packaging

SuTe
SuTe Registered Posts: 2 New contributor ?
How to include / not include packaging materials in stock valuation.
We send our orders out in cardboard boxes with packing materials. How do I account for these at the end of every month without stock taking them and writing off the used stock? (There are just too many to count as we use thousands of boxes and bags). As they don't allocate upon despatch of orders, they just end up as ever increasing purchases.

Comments

  • WarrenJAllen
    WarrenJAllen MAAT, AATQB, FMAAT Posts: 26 Regular contributor ⭐ ? ⭐
    edited December 2023
    What is the volume of orders you’re sending out? Do you keep large values of packing supplies on hand?

    Assuming they’re of relatively low value in relation to the rest of the accounts you may well be better off just attributing your boxes and packaging materials as general shipping expenses, rather than valuing it as stock.
    crispy
  • RAKTHER
    RAKTHER Registered Posts: 28 Regular contributor ⭐ ? ⭐
    edited December 2023
    Hi,
    if the packaging materials are not allocated upon dispatch of orders then you can account the materials as an general expenses.

    RAKTHER
    Training Coordinator, Osborne Training.
    WarrenJAllen
  • AndrewLeyland
    AndrewLeyland Registered, MAAT, AATQB Posts: 37 Regular contributor ⭐ ? ⭐
    Joys of GNFR this was put as a indirect cost at last place i worked and was just a every increasing expense and budgeted the spend for this dependent on volume of sales.
    RegardsCiaran Andrew Leyland
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