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Vitan
Feb 10, 2019 6:09 PM UTC
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How do you classify fuel used for a telehandler, generator etc.? Should it be a subcategory under Machinery & Equipment? Because it is not fuel for a vehicle?

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Regina_Lend_A_Hand_Accounting
Regina_Lend_A_Hand_AccountingAnswer
Feb 10, 2019 6:55 PM UTC

It is a supplies expense for your equipment, you can name it as desired and make it a sub-account of an equipment expense account if you like. I have seen parent accounts for Equipment Expense with Sub Accounts for supplies, repairs etc.

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3 replies

Regina_Lend_A_Hand_Accounting
Regina_Lend_A_Hand_AccountingAnswer
Feb 10, 2019 6:55 PM UTC

It is a supplies expense for your equipment, you can name it as desired and make it a sub-account of an equipment expense account if you like. I have seen parent accounts for Equipment Expense with Sub Accounts for supplies, repairs etc.

    VitanAuthor
    Feb 15, 2019 7:45 AM UTC

    If you put it under Machinery & Equipment then it won't show up on Profit & Loss Report and only on the balance sheet? Does that mean that as a tax deduction it gets added to the cost of Machinery & Equipment? Or is it better to put it under Cost of Goods Sold?

    Regina_Lend_A_Hand_Accounting
    Regina_Lend_A_Hand_Accounting
    Feb 15, 2019 5:48 PM UTC

    Vitan,

     

    I said it would be a sub-account of an "Equipment Expense" account, not a sub-account of a balance sheet account for Machinery and Equipment. Hope that clarifies things for you.

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