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FREIGHT COST TO BE EXPENSED OR PART OF PURCHASE

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(Querist)
26 July 2021 FREIGHT COST INCURRED ON PURCHING OF MATERIAL IS TREATED AS EXPENSE OR TO BE INCLUDED IN THE VALUE OF PURCHASE .
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
26 July 2021 Freight payment can be treated as expenses
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CA Altamush Zafar

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CA Altamush Zafar (Expert)
26 July 2021 It is to be included in the value of purchase. It is part of inventory cost.



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CMA Poornima Madhava

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CMA Poornima Madhava (Expert)
26 July 2021 It can be included in the cost of purchase.
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RAKESH

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RAKESH (Querist)
01 August 2021 @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
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
01 August 2021 Keep it as direct expenses.
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RAKESH

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RAKESH (Querist)
01 August 2021 In tally it is asking that inventory value should be affected - yes /No.
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CMA Poornima Madhava

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CMA Poornima Madhava (Expert)
01 August 2021 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.



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CA Altamush Zafar

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CA Altamush Zafar (Expert)
01 August 2021 As per AS-2 Inventory valuation freight inward is a part of Purchase Cost.
Do accordingly.
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RAKESH

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RAKESH (Querist)
01 August 2021 Thanks all for your valuable reply .

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