Late delivery CV charges accounting treatment

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.