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Recharged expenses

P&L

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My client incurred £500 of travel costs that were recharged (+ VAT) to the client.

Do you offset the sale and cost? Or show travel costs and 'other sales'?  If I dont include in sales it will make my outputs/Sales rec off  but it is not a normal sale. 

Im not sure it matters a lot as the numbers are small, but Im curious what others do.

Many thanks

 

 

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23rd May 2019 11:15

Oh Thomas, you are having a serious crisis of confidence.

The recharged expenses are part of your client's turnover. If they want a separate sales line in the detailed P&L that differentiates expenses from 'fees' or whatever for management purposes, fine.

The idea of a contra with the cost is the devil's work. Certainly not a professional accounant's, anyway.

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