We have filed trademark applications directly via the Intellectual Property Office (IPO), and paid the IPO via our company bank account (via our company credit card).
How do we tag these payments to the IPO? Do they fall under the nominal ledger code of 7302 (licenses) or is it better suited to nominal code 7600 (legal fees)? Is there a better category to place these under?
We would like to form a custom ledger code as we would like to see these specific purchases in our trial balance separately from other costs, should we be forming a custom ledger code in the 73XX, the 76XX range, or another range?
Should we be looking at another nominal code group (instead of overheads (7000-8999)), such as:
Purchases 5000-5999
Direct Expenses 6000-6999
Fixed Assets 0001-0999
Current Assets 1000-1999
I’m sorry to see that you haven’t any replies as of yet. However, this may be something for you to run past your own accountant to be sure that you’ve entered it correctly.
Unfortunately, I’m not an accountant so wouldn’t want to recommend a category, and then for you to find out it’s not correct.
Of course, we’ll leave your topic open so if anyone can answer it, they may very well reply with a better suggestion
I am not an accountant either, but this is how I decided to treat our non-profit’s applications for trademarks at the IPO.
Trademarks are intangible assets. We booked the application fees paid to the IPO to the corresponding asset nominal (0100).
In case the application gets rejected, the recorded asset gets depreciated fully in one go to zero, as depreciation costs, and the trademark is off the books.
