Thank you for visiting our Partner Zone. This area is an exclusive space for MYOB Partners. Find out how to Partner with MYOB.
2 weeks ago
Ive started using branded packaging for my products.
I understand that the packaging is a cost of sales, but the tooling charge from the manufacturer of the packaging I'm not so sure about.
Its what they charge for their machine to be set up to make our packaging.
Its a one off charge
Is it an expense or a cost of sales?
2 weeks ago
To be on the safe side you should check with the accountant.
But as a general rule, anything relating to the production of the product you sell can be classed as a cost of sale.
I have a client that has special packageing made for all their products they sell and everything to do with the cost of getting that packaging made is coded to the Cost of Sale accounts.
a week ago
I totally agree with @GDay53. My take would be to check with your accountant to get their advice as this can be bit tricky.
My understanding is that everything directly related to getting goods ready for sale is the cost of sales but since it is one-off cost it can be classified as your expenses as well.
Should there be any other queries, please do not hesitate to bring it to this forum.