Packaging for shipping... cost of sales?

Hi all,

Quick question. Running a simple online store, copying over basic sales details to QF for accounting, and recording all purchases and expenses in QF.

Carriage from supplier to me is covered under carriage which is cost of sales. I charge customers a shipping fee which goes under Distribution and Carriage which is a sales account. I pay my courier for sending to customers, which goes under postage and carriage, which is an expense account.

QF has a packaging account, but this is under cost of sales so I assume it is for packaging products for resale. I’m pretty sure that postage tubes/padded envelopes for shipping shouldn’t be considered cost of sales, but please correct me if I’m wrong. If I’m right, which account should I post theses costs to?


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The chart of account used in Quick File is industry standard, you are also able to add your own nominal code under the category required:

Thanks Joe.

What I was looking for clarification on is: is packaging for delivery (envelopes, cardboard postal tubes, bubble wrap) a cost of sales item or an expense?