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Inventory or consumable?

Would you class proofing paper as an inventory item or consumable?

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For years the company I work for has included toners and paper for their wide format printers as stock rather than a consumable. At one point the company did run large volumes of client proofs of the machines therefore can see why the items were classfied as stock as effectively they were the raw materials required to provide a finished good to the customer.

However there are now minimial proofs being sent out to the customer and the printers are mainly for internal purposes to check colour etc before the finished job is sent to the customer.  The value of the toners and paper we currently hold are below £5k.

I am thinking of reclassifying the treatment of these items from stock to consumables - does this seem reasonable?

Is it best to notify the Statutory accountants of this before doing?

Thanks in advance for your help.

Replies (3)

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By johngroganjga
08th Oct 2018 16:37

Don’t quite follow the question. Are you asking whether to account for opening and closing stocks of unused consumables or whether to write the cost of purchase off as incurred?

They are consumables either way you see.

If so, I think materiality is your friend.

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By lionofludesch
08th Oct 2018 17:06

Tell them by all means though I suspect it won't bother them.

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By andy.partridge
08th Oct 2018 17:18

If a change of policy impacts upon someone's budget, that someone will care.

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