Outsourcing Work

[GarryRoss]

Hi All,

I'm looking to outsource some design work to another company, (printers) so in this instance they will produce my product and potentially mail it to my customer as an when I receive an order.

How should I account for the purchase in my bookkeeping records? Is it cost of sales, printing etc?

Thanks in advance for any help with clarifying this!

Garry

 

[Scalloway]

I would class it as cost of sales.

 

[GarryRoss]

I would class it as cost of sales.

Thanks. I was hoping this might be an accepted method.