If you receive goods into your company from a supplier of freight that would later be sold, these are purchase costs or 'carriage in'. In other words I understand any invoices received from suppliers would go to a 5000 nominal as these are associated with cost of sales. If then you have other freight purchase invoices which were entered into Sage for freight charged for transporting our product to an end user e.g 'carriage out', these are costs incurred by the company but also charged out on invocies to make a profit, would this also be in a 5000 nominal such as 'carriage out'. As I understand it, sales made that include carriage that cannot otherwise be made without the transportation cost should be included in the cost of sales calculation. So what I am asking is would these 'carriage out' purchase invoices be entered in a 5000 nominal, whilst the carriage which is recharged to end user be recorded in the sales nominal such as distribution and carriage. This way you can see how much of that profit on carriage you purchased is part of your total sales revenue ? I don't want to include these freight purchase invoices in a 4000 nominal because this nominal is for carriage recorded on sales invoices that was recharged it's money coming in. Any help would be appreciated here.
|