Cost of Sales or Expenses

[Andre_h]

Hi,

Are the following to be entered as Cost of Sales or Expenses on my accounting system?

Cost and delivery costs of goods resold in my laundry shop
Outsourcing costs - i.e. costs paid to a third party to carry out services such as alterations and dry cleaning services

Thanks,

André

[Andromeda]

Both are COS Andre-h. I presume the outsourcing costs are invoiced onwards.

[Andre_h]

Yes. thanks Andromeda. Thats what I thought. But someone told me that you can really only call it cost of sales when you manufacture or resale an item.