Late delivery CV charges accounting treatment

late delivery charges should be treat as income or capitslise assets vy reducing assets.
Replies (5)
Quick Summary
This discussion explores how to account for charges incurred due to late deliveries from vendors. The consensus leans towards treating these charges as income if they don't directly relate to the cost of a fixed asset. However, if the late delivery impacts the cost of a capitalised asset, it should be deducted from the asset's value. If a clear distinction between capital expenditure (CAPEX) and operating expenditure (OPEX) isn't possible, the charge should be credited to the profit and loss account as income.

Please elaborate your case for an appropriate answer.
Later delivery of material from vendors so we deduction the penalty so it's should treated as income or as treated as reduced expenses cost
If its relating to the cost of a fixed asset, then deduct from fixed asset. Else, treat it as penalty income.
No this is general items both are used both activity capex and opex
If there is no proper bifurcation,please take it as credit to P/L as income.

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