Hi, I work for a Local Authority which purchases large quantities of fuel for its own use - mainly for the Refuse Trucks etc. Very occasionally we will supply fuel to a third party, eg the NHS especially when there are shortages. Normally for the Local Authorities own use we charge the cost centre for its use of fuel and this is then controlled by a Balance Sheet account which looks at stock etc. However if we make a sale to a third party what should the transactions be? Should we charge a cost centre within the Local Authority and then credit the income all within the Revenue Accounts? An alternative would be to charge the Sundry Debtors account and then match this off against the invoice we create for the recharge. I would have preferred this option since the charging of an ad hoc cost centre within our Revenue Accounts surely will distort our expenditure and income especially since we are not in the business of selling fuel to anyone! However my bosses have told me to do it this way so I have to bow to their superior knowledge. What do you think? I would love to know what the correct Accounting treatment is? Thank you in advance for any help with this subject.