I put them under 4905 if I have sold postage as part of a sale, 5103 as a direct cost when I buy postage (courier invoices and franking machine top-ups) and 7501 for general postage related items that are nothing to do with sales.
I put them under 4905 if I have sold postage as part of a sale, 5103 as a direct cost when I buy postage (courier invoices and franking machine top-ups) and 7501 for general postage related items that are nothing to do with sales.
Me too. 490 (something) - cant recall now but you get the gist!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If you have paid for postage, which is incurred to send out the things you have sold, I would post it to 5100, as it is part n parcel (PUN!) of the getting the product to the customer. (You could rename it "Shipping costs"). I normally leave delivery costs charged by suppliers in with 5000 (as its cost me the full amount to obtain the product, either way) - but you could show this in its own code, also.
I prefer to put general postage costs to 7501 - like if I am sending out cheques to pay suppliers, or letters.
However, you do not HAVE to do it this way. You can do it anyway you wish
You mention that your shipping is free to your customers, so it's included as part of the sale price, technically. Should you ever decide to recharge it separately, as the lovelies say above, you can post it to a 4XXX code. You could rename 4002 to "Shipping Income" if it wasn't being used.
-- Edited by FoxAccountancyServices on Tuesday 24th of March 2015 01:26:58 PM
