Hi Hi,
How to make an accounting entry for mould charges?
Vendor invoiced us 1 set mould charge together with goods in one invoice.
I wondered it need to seperate into two accounting entries?
one is for purchases goods? and one is for mould charge?
Actually, the mould is still keeping at the vendor's factory. Vendor only exported goods to us.
Regards,
Cat^^
Dear Cat,
Certain question arise in the case mentioned by you.
First, Are you gonna to received mould
If yes, then it will be purchase for you depend on your usage of mould and booked when you receive those moulds
Second, Are mould is used by supplier to produced goods which he supplied.
In this case mould charges is part of cost of such goods supplied and include in purchase price of goods supplied.
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