CATERING - FOOD PURCHASES

[Caterer]

I am a caterer. I buy ingredients such as seasonings to prepare food that is either sold or given as samples. I've been recording the purchases of seasonings as supplies rather than COGS due to the small units of measurement, 1/4 TSP - 1 TBS per serving. Is this acceptable or should I be recording under COGS? 

Also I've also been recording food purchased and prepared for samples as supplies rather than marketing. In either instance it results in an expense account used but I want to do record keeping that is industry standard accounting. I would love to hear from someone in the catering or restaurant business to please provide GAAP for recording these transactions for SEASONINGS and CUSTOMER SAMPLES.

If you have any other TIPS, I would love to hear them. Thanks/

[Rustler]

Food/ingredients has a short shelf life, do not keep as inventory, just post the purchase to COGS.  And use service items for what you sell posting to income

[Caterer1]

Thank you.

[EmilyCowan]

Hey @Caterer1 - this is a great question! I'm glad you find @Rustler's comment helpful.

@Anonymous, you're in the food & bev accounting business. Do you have anything to add here?

[Anonymous]

@Rustler 

For the sake of broadening the discussion, does "short-shelf life" only apply to perishables and consumable used within a certain time-frame? Would there be any atypical cases for logging an ingredient as inventory?