IPR payments

IPR payments

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I make fortnightly payments to a company for using IPR.  Do I record this as an expense in the Nominal or can I record it as cost of sale?

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Euan's picture
By Euan MacLennan
23rd Jan 2015 10:41

It depends ...

... on what you are selling to your customers.  If it is a service which specifically includes use of the IPR for which you are paying, you could put it in cost of sales.

What do you mean by "an expense in the Nominal" as opposed to "cost of sale"?  You will be charging the expense to a nominal account in any event - it is just a question of whether that account is included in Cost of Sales or in Overheads.

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