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Moose1's avatar
Moose1
User
6 months ago
Solved

Refrigerant gas stock on hand

Hi,   I'm a sole trader and I buy various types of Refrigerant gas for refrigeration systems that I use occasionally when I need to gas up a system. The refrigerant cylinder I buy comes in 12Kg of ...
  • Earl_HD's avatar
    Earl_HD
    6 months ago

    Hi Moose1,

    Thank you so much for your detailed post and my apologies for the late response. 

    In this kind of situation, it's a great idea to consult with your Accountant for the most precise guidance. From what I know, purchasing the refrigerant gas is generally viewed as an expense. But considering that you sell it to customers with a markup, treating it as inventory or stock might provide a more accurate representation. Using both expense and asset accounts might not capture the full picture accurately. Tracking it as inventory or stock could better align with the buying and selling dynamics of this product in your business. Consulting your Accountant will ensure you choose the most suitable approach for your specific circumstances.

    Feel free to post again, we're happy to help!
    Regards,
    Earl

Earl_HD's avatar
Earl_HD
MYOB Moderator
6 months ago

Hi Moose1,

Thank you so much for your detailed post and my apologies for the late response. 

In this kind of situation, it's a great idea to consult with your Accountant for the most precise guidance. From what I know, purchasing the refrigerant gas is generally viewed as an expense. But considering that you sell it to customers with a markup, treating it as inventory or stock might provide a more accurate representation. Using both expense and asset accounts might not capture the full picture accurately. Tracking it as inventory or stock could better align with the buying and selling dynamics of this product in your business. Consulting your Accountant will ensure you choose the most suitable approach for your specific circumstances.

Feel free to post again, we're happy to help!
Regards,
Earl