How to account for shipping on business asset purchased?

fabianoa

I recently purchased a new camera for my photography business and payed shipping on it. I feel like the shipping should be separate from the item cost especially since it's a depreciatable asset. Can I categorize the shipping in the same account as what I use for shipping product out to clients or should I make a new account?

Thanks!

Mikeg

@fabianoa,
The cost of an asset for tax purposes would include sales tax, shipping etc.

MerlinAccounts_UK

I have to concur with Mikeg, you can't separate the costs out as they are an intrinsic part of the cost of the asset to you. If, however, you arranged your own shipping and paid for that separately then I'd suggest that you can show that as an expense rather than an asset cost.

fabianoa

Thanks @MerlinAccounts_UK and @Mikeg ! I agree now that I understand more about this topic. Thanks for the help!

Supriya

Hi @MerlinAccounts_UK,

I have 2 separate invoices - for my assets from the manufacturer and for the shipping from the freight company. I would like include the shipping cost into the asset cost. Is this doable in wave?

Currently, the shipping cost appears as an COGS expense - which is fine but the expenses are all lumped into one month. I am trying to find out how I can split the cost either into 12 month (not sure if this is a fair practice) or to split the cost of shipping into each item purchased from the manufacturer.

Newbie here. Any help is much appreciated!