Tally Entry for packaging material


This query is : Resolved 

Quick Summary
Packaging material is treated as direct expense if used in manufacturing, but as indirect expense if used for packing finished goods for sale. Classification depends on purpose of use.

(Querist)
18 February 2024 Packaging material such as wooden box / crate, Film, bubble roll, etc purchased comes under which head under direct dor indirect expense?

18 February 2024 Indirect expenses

RAJA P M (Expert)
18 February 2024 @Elbin,

What is Your business as per Your query...??! Is that Trading or Manufacturing...??

Elbin (Querist)
19 February 2024 @ Raja Manufacturing of Machines

RAJA P M (Expert)
19 February 2024 If mfg then account the said packing materials under DIRECT EXPENSES.

Elbin (Querist)
19 February 2024 Okay & what will be the head if the company is doing both manufacturing+ Retailing?

RAJA P M (Expert)
19 February 2024 Under DIRECT EXPENSES....

19 February 2024 Packing material used for what purpose??

Elbin (Querist)
20 February 2024 for packing sale related materials

22 February 2024 Show it in indirect expenses as it is used for sale


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