Head of exps.

Are you working with a construction company?

No I am working with Solar Company.

Installation done at site

 

So your company installs solar systems to your clients. And is this painting expenses relates to a contract which you are currently doing?

Yes right sir

 

 

I don't know how your accounting patern really is. Accounting is done as per the requirement of reports you need. Lemme ask some more question. Do you need to know the profit of each contract ?

No it will be recorded under site expenses . no we dont want to know the profit for each contract

Then the next point to be considered is materiality and occurance of the expense. If it occupies a major expenses of the contract my opinion is that it can be accounted as painting expenses itself. But when we are reading financials it may not be clear and can lead to confusion. So what you need to do is to add something between painting like solar like panel painting expenses or something like that. You have not mentioned where does the paint apply.

*between

before

It Can Be Charged To Site Expenses But Subjected 2 Materiality