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Arif3
August 5, 2018

CATERING - FOOD PURCHASES

  • August 5, 2018
  • 1 reply
  • 0 views

I am a caterer. I buy ingredients such as seasonings to prepare food that is either sold or given as samples. I've been recording the purchases of seasonings as supplies rather than COGS due to the small units of measurement, 1/4 TSP - 1 TBS per serving. Is this acceptable or should I be recording under COGS? 

 

Also I've also been recording food purchased and prepared for samples as supplies rather than marketing. In either instance it results in an expense account used but I want to do record keeping that is industry standard accounting. I would love to hear from someone in the catering or restaurant business to please provide GAAP for recording these transactions for SEASONINGS and CUSTOMER SAMPLES.

 

If you have any other TIPS, I would love to hear them. Thanks/

 

    1 reply

    Rustler
    Rustler
    August 6, 2018

    Food/ingredients has a short shelf life, do not keep as inventory, just post the purchase to COGS.  And use service items for what you sell posting to income

      C
      Caterer1
      August 19, 2018

      Thank you.

        EmilyCowan
        EmilyCowan
        August 20, 2018

        Hey @Caterer1 - this is a great question! I'm glad you find @Rustler's comment helpful.

         

        @201097, you're in the food & bev accounting business. Do you have anything to add here?

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