New Purchases Category, outside services?

Accounting
1

Hi,
Do I list the cost of using an outside service as a purchase?
We make cider and send it to another cider producer who bottles it for us and then we pay them for this service.
How do I record this in my accounts, as a purchase? if so what category? Productive Labour? if not then how do I record this cost?
thanks

2

You are buying a service so it is a purchase. My own inclination would be to use a custom category as this would show that major cost clearly in the accounts.

Remember that the objective is to help you understand where your money comes from and where it is going, not an exercise for an accountancy exam.

1 Like
3

I agree the best way is to create a custom category to which that specific supply can be added.
Just think it as a service which needs to be paid so it would be a purchase.
5003 is packaging so create 5004 as bottling in your case.

4

I can’t find the entire purchase category list with corresponding codes only the short list when entering a new purchase… where do I find this?
thanks

5

You can view a full list of nominal codes by going to Reports >> Chart of Accounts.

The 5000 range is mainly used for purchases, but there are a few asset codes available too.