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Suppliers surcharges.
How to record a suppliers surcharge, in what account do I post it.
I work as a automobile air conditioning repairer, when I buy refrigerate bottles there is a surcharge on the bottle. You have a fee of let’s say 45 on the first bottle, you then pay 45 fee on the next which is then credited 45. I have you cost of sales account for this, is this ok to do.
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Hi @Gem-ice
Personally, I'd do that - yes. Just enter it as the same category/account as the gas itself.
If you wanted to get all technical about it then, to the letter, the surcharge is actually an asset (redeemable if you ever return all your refrigerant bottles to the supplier) but I don't think anyone will get too worked up about the difference.
Hope this helps.
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Thanks
solved
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