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micmck
Level 1

How do I categorize environmental fees such as tire disposal? It is not technically a tax, right? Should it be under cost of goods sold?

 
3 Comments 3
Rustler
Level 15

How do I categorize environmental fees such as tire disposal? It is not technically a tax, right? Should it be under cost of goods sold?

No it is not COGS, COGS is limited to the cost of the items being sold

As you said it is a fee, so it should post to a payable account you create in the chart of accounts, then later you pay the fee, use the payable account as the expense (reason) for the payment

MTSTTW
Level 1

How do I categorize environmental fees such as tire disposal? It is not technically a tax, right? Should it be under cost of goods sold?

How do you record that Tire Disposal Fee on a sales receipt? What account/category etc?

Silenzic
Level 1

How do I categorize environmental fees such as tire disposal? It is not technically a tax, right? Should it be under cost of goods sold?

I would love to know the answer to this as well.  Is it considered disposal fees perhaps?

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