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FREIGHT COST TO BE EXPENSED OR PART OF PURCHASE

This query is : Resolved 

FREIGHT COST INCURRED ON PURCHING OF MATERIAL IS TREATED AS EXPENSE OR TO BE INCLUDED IN THE VALUE OF PURCHASE .

Freight payment can be treated as expenses

It is to be included in the value of purchase. It is part of inventory cost.

It can be included in the cost of purchase.

@Seetha raman Sir .If the freight is treated as expense .Is this a direct expense or indirect exp. And I need to keep the inventory value affected in tally .pls

Keep it as direct expenses.

In tally it is asking that inventory value should be affected - yes /No.

If you want to treat it as a part of inventory cost, select Yes. If you want to disclose it as a separate expense, select no.

As per AS-2 Inventory valuation freight inward is a part of Purchase Cost.
Do accordingly.

Thanks all for your valuable reply .



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