Results 1 to 4 of 4

Thread: Costing salaries and expenses between companies

  1. #1
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts

    Costing salaries and expenses between companies

    Good day All,

    Can someone please help with the following two matters:

    I have a situation where I have registered two separate company, call them Trade1 and the other Logistics2
    Trade1 sells goods but does not transport
    Logistics2 does the transport to customers.

    1. Costing or allocation of Salaries
    Myself and another manager work in both companies but we both only get paid by our salaries by Trade1 (50% of time is spent on Trade1 and 50% on Logistics2)
    We would like to know how to cost the time spent as percentage of salaries, meaning Trade1 recovers 50% of the salaries cost from Logistics2

    2. Costing Van / Truck rental
    Logistics could not get all the finance or rental it needed to get the right number of trucks as it was a new business with no history
    So, Trade1 financed a Van/ Truck in the name of Trade1 and is paying the bank monthly
    How do we cost that as an expense in the books of Logistics2? We do not want to do a loan as a loan does not reduce operating expenses

    Thank you all

    Best regards
    Sabatha

  2. #2
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts
    Can someone please help

  3. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by SSS100 View Post
    1. Costing or allocation of Salaries
    Myself and another manager work in both companies but we both only get paid by our salaries by Trade1 (50% of time is spent on Trade1 and 50% on Logistics2)
    We would like to know how to cost the time spent as percentage of salaries, meaning Trade1 recovers 50% of the salaries cost from Logistics2
    I raise an admin fee invoice. It's income in the one company and an expense in the other.

    Quote Originally Posted by SSS100 View Post
    2. Costing Van / Truck rental
    Logistics could not get all the finance or rental it needed to get the right number of trucks as it was a new business with no history
    So, Trade1 financed a Van/ Truck in the name of Trade1 and is paying the bank monthly
    How do we cost that as an expense in the books of Logistics2? We do not want to do a loan as a loan does not reduce operating expenses
    Put a rental agreement in place between the two entities and have Trade1 rent the van to Logistics2.

  4. Thank given for this post:

    flaker (26-Oct-15), SSS100 (25-Oct-15)

  5. #4
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts
    Thank you Dave,
    will send pm for info

    Enjoy your day

Similar Threads

  1. Replies: 1
    Last Post: 04-Jun-13, 11:20 PM
  2. New companies Act legal and accounting requirements for a Private Companies
    By Dastan Kieton in forum Business Finance Forum
    Replies: 8
    Last Post: 08-Nov-12, 07:47 AM
  3. Costing for Profit
    By Abdi in forum General Business Forum
    Replies: 12
    Last Post: 05-Jul-12, 05:56 PM
  4. [Opinion] Costing per Network point
    By Cpt Chaos in forum Technology Forum
    Replies: 2
    Last Post: 15-Jul-10, 10:19 AM
  5. How much is your BBBEE and EE costing?
    By sterne.law@gmail.com in forum BEE and Employment Equity Forum
    Replies: 1
    Last Post: 26-Mar-10, 04:33 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •