ERP Purchase Accounting Entry in Machine Manufacturing Factory / Company
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08 September 2025
Hello Accounting Experts,
Kindly assist me with the following Purchase transactions entries comes under which head in accounting Direct Purchase or Indirect Expense, in a machine manufacturing company ?
1) Hardware Components Such as Screws, Bolts, Nuts, Fasteners, Washers, Etc.
2) Purchase of Paints, Varnishes, Solvents & Thinners, Etc
3) Millstones, Grindstones, Grinding Wheels, Sand Paper, Etc.
4) Welding Rods / Electrodes
5) Lubricants such as Machine Oils, Gear Oil, Hydraulic Oil, Cutting Oil, Grease, Etc.
Please let me know if you require any additional information from my end.
Your insights & guidance would be greatly appreciated
Thank you for your time & support
Kindly assist me with the following Purchase transactions entries comes under which head in accounting Direct Purchase or Indirect Expense, in a machine manufacturing company ?
1) Hardware Components Such as Screws, Bolts, Nuts, Fasteners, Washers, Etc.
2) Purchase of Paints, Varnishes, Solvents & Thinners, Etc
3) Millstones, Grindstones, Grinding Wheels, Sand Paper, Etc.
4) Welding Rods / Electrodes
5) Lubricants such as Machine Oils, Gear Oil, Hydraulic Oil, Cutting Oil, Grease, Etc.
Please let me know if you require any additional information from my end.
Your insights & guidance would be greatly appreciated
Thank you for your time & support
08 September 2025
Hardware Components such as Screws, Bolts, Nuts, Fasteners, Washers, etc. - These items are typically consumables used directly in the manufacturing process, often classified as Direct Purchase or Raw Materials. They become part of the finished product.
Purchase of Paints, Varnishes, Solvents & Thinners, etc. - These are generally used as consumable supplies for finishing or maintenance. They tend to be considered Indirect Expenses as they support production but are not part of the main materials.
Millstones, Grindstones, Grinding Wheels, Sand Paper, etc. - These are also consumable items used in the manufacturing process for maintenance or finishing and usually fall under Indirect Expenses.
Welding Rods / Electrodes - These are used directly in the manufacturing or assembly process and hence are often classified as Direct Purchase.
Lubricants such as Machine Oils, Gear Oil, Hydraulic Oil, Cutting Oil, Grease, etc. - These are used for machine maintenance and operation, considered Indirect Expenses as they support but do not form part of the finished product.
Purchase of Paints, Varnishes, Solvents & Thinners, etc. - These are generally used as consumable supplies for finishing or maintenance. They tend to be considered Indirect Expenses as they support production but are not part of the main materials.
Millstones, Grindstones, Grinding Wheels, Sand Paper, etc. - These are also consumable items used in the manufacturing process for maintenance or finishing and usually fall under Indirect Expenses.
Welding Rods / Electrodes - These are used directly in the manufacturing or assembly process and hence are often classified as Direct Purchase.
Lubricants such as Machine Oils, Gear Oil, Hydraulic Oil, Cutting Oil, Grease, etc. - These are used for machine maintenance and operation, considered Indirect Expenses as they support but do not form part of the finished product.
16 September 2025
if Lubricants purchases comes machine maintenance should i suppose to deduct tds accordingly ?
16 September 2025
No. It is goods, not service.
20 September 2025
Good Luck..
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