Just a quick question. I am trying to add a purchase to our account of supplies we have to buy each month. These supplies are not opening stock as there will be no closing stock as it goes straight to sites and they use it all up. It also isn’t stock (asset) as it doesn’t stay with us at all.
It is basically what would be considered parts to complete a job but on the New Purchase categories, I can’t find anything to fit this and it won’t let me create my own.
Please advise as to what category I should place this under?
They go directly to customers. They are not held with us. We operate a cleaning service and all the supplies are bought and immediately taken to the sites and they are then used over the next month. We then buy more and go through the process again. This is why I thought of them more as parts for a job.
That sounds to me like “general purchases” - things you buy to either resell to a customer or use as part of a specific job.
If it were cleaning supplies to use at your own premises then I’d probably classify them as overheads but if they’re for a particular customer then they’re a cost of sales.
Just because they go straight to a particular site doesn’t mean they are for that particular job as such. I buy materials for jobs (sockets, cable etc) and they are no different to the same items I bought last week for another similar job. They are just general purchases.