Direct Expense or Purchases Nominal?

Accounting
1

Good morning Guys,

I’m setting up QuickFile to use with our Events Company. Now, I’m hoping to group all our purchases and Expenses for the Shows into One Nominal (Sales revenue nominals have been setup no problem)

My question is, would a ‘Hold All’ Nominal best to be classed as a Direct Expense or a Purchase Nominal?

The Items in question which would be seen as expenses would be:
Hire of venue,
Purchase of Services
Purchases of Equipment / Assets to use for/to the shows.

Would I be best setting up 2 separate nominals for this? 1 as a Direct Expense and one as a Purchase.

We want to be able to drill down at the end of the show and analyse each part.

Thanks in Advance for any help offered.

Regards
Mark

2

Hi @keepitsecretcompany

I think 2 nominals may be the way to go here. Obviously, you know your business better than anyone here would, but the way I see it is:

If these relate to a specific event, then they would be a variable cost, and therefore in the purchase category, 5000-5999.

The purchase of equipment would be either a direct expense, or even an asset (depending on the value).

3

Thanks for your info on this. Much appriciated.

Noted on 2 Nominals and it does make sense, However, the Category if Direct expense only allows me to select from 3 sub-cat options:

Larbour
Comissions
Sales Promotions

None of this would particular be correct. Anyway around this? Can we add our own Sub-Cats?

regards
mark