Where to post R&D costs as an overhead

Accounting
1

We make a lot of purchases for researching new designs and investigating better ways to make technology. How can I post those purchases to R&D costs as an overhead?

Thanks
Dan

2

Please would someone suggest a category to record R&D purchases to.

Many Thanks
Dan

3

I think there’s probably some degree of subjectivity here as it’s more of an accounting query. I’m not an accountant, but generally speaking, if you can’t find an exact pre-existing category you can always create your own.

If you later find that you’ve posted to the wrong code, it’s very simple to re-code those entries or journal them somewhere else, so I wouldn’t worry to much about this.