Packing charges is direct exp or indirect exp?
We made some products pack them & dispatch to customer. we add packing charges in Sale Bill.
Where we have to book packing exp in profit & loss a/c in the head of direct exp or indirect exp.
8 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 02 April 2021
It will comes under Direct Expenses
Amit
(Accounts )
(528 Points)
Replied 02 April 2021
At the time of account finalisation will packing charges are add in our indirect income !
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 03 April 2021
Not income, but expense. All sales and distribution xpenses are direct costs. Special packaging is indirect costs, eg., tubes required to pack toothpaste is direct, while other wrappings extra for transportation is indirect expenses. First me to production expenses and secondary packing is fixed costs So add these expenses to distribution expenses.
Rahul Sharma
(2 Points)
Replied 05 November 2022
we are purchasing any item and Packiing charge has been charged by Seller on Machinery, It will be indirect expenses or direct expenses
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 05 November 2022
WCM-world class management segregates stuff from direct stuff. I dont have the resource readily available right now but Its a direct expense but what about the glue??? Tomorrow
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