Hello All,
I have a question regarding the cost of transferring materials from one warehouse to another to meet the requirement for a specific customer order. I read the following paragraph from the knowledge base on the website, which confirms that it should be charged to P&L. which is totally correct. but should it be charged in selling and distribution expenses or in
COGS as we are project based company?
the paragraph is:
On the other hand, transporting inventory between retail points to match the local demand, or transporting them from retail points to customer premises, is more likely to fall under selling activities and therefore be expensed in P/L as incurred.
Thanks
Hesham
Cost of transferring materials from one warehouse to another
Re: Cost of transferring materials from one warehouse to another
Hi, the point of this paragraph is to state that such expenses should not be added to the cost of inventories in the balance sheet.
The classification in a specific line in P/L is up to you. In my opinion it can be treated as a cost of fulfilling the project
The classification in a specific line in P/L is up to you. In my opinion it can be treated as a cost of fulfilling the project
Re: Cost of transferring materials from one warehouse to another
Many thanks Marek.