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View Full Version : Should I input postage on my purchases spreadsheet if was charged to the customer?



loupo
24-10-2011, 10:41 PM
I am sure this is probably a very silly question but I'm doing my expenses and I'm really confused. Should I note down the postage costs of sending my parcels to customers even though I have charged them P&P already? Obviously I would go with the receipt for each rather than the actual price that I charged.

Regards
Louise

Caroleecrafts
25-10-2011, 05:45 AM
I show the sale as sold goods and a separate code for postage paid, then put through the receipt from the post office as an outgoing this is standard accountancy practice, I know one cancels the other out but still an expense.

nattynetty
25-10-2011, 08:37 AM
I show the sale as sold goods and a separate code for postage paid, then put through the receipt from the post office as an outgoing this is standard accountancy practice, I know one cancels the other out but still an expense.

Yes I do the same. It'll also show you whether you are under charging for P&P, as Caroline says ideally they should cancel each other out.

AliCat
25-10-2011, 08:46 AM
My accounts show the total paid by the customer in sales and the total I have paid in postage under expenses. As everyone has already said, the figures pretty much cancel themselves out over the year even though I have a set postage charge for orders rather than charging postage at cost and I buy stamps in bulk to see me through the year.

AnnieAnna
25-10-2011, 08:56 AM
The p&p the customer pays you is money in, the money you pay the post office for stamps (or courier or whatever) is money out.

Netty and Caroline split their money in from the sale into goods and postage. I'm too lazy and leave them lumped together. I file mine under Market sales or Web sales.
The cost of the stamps is filed under Money Out, Office Expenses.

In real life, and for tax purposes, it doesn't matter how record it as long as the bits go in the correct in or out column. What you do depends on what information you think you'll be wanting to pull out later in the year to review how you are doing.

Like Netty suggests you might want to check you are charging enough for postage. I've been doing it long enough to be sure I am.