Warranty claim expenses

Expenses due to warranty claim

If expense due to warranty is Rs 20000 and the delivery charges are Rs 100 to deliver it to the customer so what is the accounting treatment for it 

  1. Does the delivery charges are include in warranty expenses???
Replies (4)
Quick Summary
This discussion clarifies the accounting treatment for expenses incurred due to warranty claims. It establishes that delivery charges should be recorded separately from warranty expenses, as they are a distinct cost incurred in various scenarios. Furthermore, travel expenses incurred to reach a customer for a warranty claim should be classified under 'Travelling Expenses' rather than 'Warranty Claim Expenses', focusing on the nature of the expense itself.

No Delivery Charges should not be included in the warranty charges , both are saparate leaders , because every time you are going to charge delivery charges in other cases also .

means we have record delivery charges in  delivery charges a/c ( where all the delivery exp is recorded)

and what if the person who claim the warranty lives in other city so the travelling expense to travel to the customers place is recorded in which account in travelling expenses or warranty claim expenses ??

pls reply !

It should be Travelling Expenses .

means we have look on the nature of expenses not on the reason of expenses ??? 

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