An interior design firm is seeking guidance on how to record payments to labour agencies like painters and carpenters in Tally. They are unsure whether to classify the amounts paid for services and materials as purchases or expenses. Furthermore, they need to determine if these expenses are direct or indirect.
27 January 2023
Hello everyone out there. I am working in Interior design firm. We hire labour agencies such as painter or carpenter who usually charge amount on the daily basis. So shall I consider the services provided or material brought by them as purchases or shall I treat I as expense? And if it falls in expense, then is it a direct or indirect expense?