The Book-keepers Forum (BKF)

Post Info TOPIC: Carriage inwards, Carriage outwards....confused!


Guru

Status: Offline
Posts: 1470
Date:
Carriage inwards, Carriage outwards....confused!
Permalink Closed


Hi all,

Hope you're all enjoying the slightly cooler weather!

I have a question regarding Carriage inwards and Carriage outwards.  When doing the P & L, Carriage inwards is added to Purchases, being part of the cost of purchasing your goods and Carriage outwards is considered an expense and debited to the P & L.  Am I right so far?

When I look at Sage however, there seem to be three different nominal codes for Carriage.....one in the 5xxx range which is obviously Carriage inwards, one in the 75xx range for Postage and Carriage, but another in the 4xxx range which is in the Sales category.  So if I was to send an invoice to a customer and added carriage, would it go to 4xxx or 75xx ? And if it's the 75xx range, when does the 4xxx apply?

Frank Wood's Accounting says Carriage outwards is not part of the selling price of the goods and is always added as an expense in the P & L.

All replies much appreciated as usual !  smile.gif

Pauline

__________________

Pauline



Expert

Status: Offline
Posts: 1609
Date:
Permalink Closed

I think carriage in the sales range is when you have charged for it so it is part of your revenue, the actual cost going in your postage and carriage as an expense, so you sell an item and charge carriage at say £5 which goes in the 4000's as part of the sale and say it cost you £3 to post the item out then that would go in your postage and carriage in you P+L so you would have a difference of £2 between revenue and expense, they would then enter the £5 in their system as carriage in the 5000 range, I think. hmm


__________________
Steve


Guru

Status: Offline
Posts: 1470
Date:
Permalink Closed

Hi Steve,

Many thanks for the quick reply. Yes, I see what you're saying. So, if I were to invoice a customer and then charge say £5 for carriage and add that to the invoice it would be part of your sale, so in the 4xxx range, but if I was then to send the products via DHL say and they charged me £3 (not very likely...lol), that would be in the 75xx range as an expense? Have I got that right?

Pauline

__________________

Pauline



Guru

Status: Offline
Posts: 1329
Date:
Permalink Closed

Agree with you Steve

__________________

Advice from beyond the grave!!!

E&OE



Guru

Status: Offline
Posts: 1329
Date:
Permalink Closed

Pauline

Yes you've got it right.

__________________

Advice from beyond the grave!!!

E&OE



Guru

Status: Offline
Posts: 1470
Date:
Permalink Closed

Hooray...lol

Thanks Steve and Sheila. smile.gif

BTW...cheeky little girl you have there Steve!

Pauline

__________________

Pauline



Expert

Status: Offline
Posts: 1609
Date:
Permalink Closed

Cheekier than you'd imagine evileye


__________________
Steve
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About