cancel
Showing results for 
Search instead for 
Did you mean: 
Super Explorer ***
Solved

How do you classify fuel used for a telehandler, generator etc.? Should it be a subcategory under Machinery & Equipment? Because it is not fuel for a vehicle?

 
Best answer 02-15-2019 09:48 AM

Accepted Solutions
Established Community Backer ***

Re: How do you classify fuel used for a telehandler, generator etc.? Should it be a subcategory under Machinery & Equipment? Because it is not fuel for a vehicle?

It is a supplies expense for your equipment, you can name it as desired and make it a sub-account of an equipment expense account if you like. I have seen parent accounts for Equipment Expense with Sub Accounts for supplies, repairs etc.

Established Community Backer ***

Re: How do you classify fuel used for a telehandler, generator etc.? Should it be a subcategory under Machinery & Equipment? Because it is not fuel for a vehicle?

Vitan,

 

I said it would be a sub-account of an "Equipment Expense" account, not a sub-account of a balance sheet account for Machinery and Equipment. Hope that clarifies things for you.

3 Comments
Established Community Backer ***

Re: How do you classify fuel used for a telehandler, generator etc.? Should it be a subcategory under Machinery & Equipment? Because it is not fuel for a vehicle?

It is a supplies expense for your equipment, you can name it as desired and make it a sub-account of an equipment expense account if you like. I have seen parent accounts for Equipment Expense with Sub Accounts for supplies, repairs etc.

Highlighted
Super Explorer ***

Re: How do you classify fuel used for a telehandler, generator etc.? Should it be a subcategory under Machinery & Equipment? Because it is not fuel for a vehicle?

If you put it under Machinery & Equipment then it won't show up on Profit & Loss Report and only on the balance sheet? Does that mean that as a tax deduction it gets added to the cost of Machinery & Equipment? Or is it better to put it under Cost of Goods Sold?

Established Community Backer ***

Re: How do you classify fuel used for a telehandler, generator etc.? Should it be a subcategory under Machinery & Equipment? Because it is not fuel for a vehicle?

Vitan,

 

I said it would be a sub-account of an "Equipment Expense" account, not a sub-account of a balance sheet account for Machinery and Equipment. Hope that clarifies things for you.