The question of where to attribute transportation costs, as practice shows, is not easy, even for those companies that have had management accounting for a long time. However, if you understand it properly, there is nothing super complicated here.
Instructions
Step 1
One of the most common mistakes is to attribute to transportation costs everything that is somehow connected with transportation. There are three groups of transportation costs.
Step 2
The first group: transportation costs attributed to the cost of goods (materials and raw materials). This group includes all costs associated with the delivery of goods from the supplier to the warehouse. A separate item in the BDDS is allocated for such expenses. It can be called, for example, like this: "Procurement of goods and delivery to the warehouse."
Step 3
This article includes the following sub-items: customs clearance and delivery, freight forwarding services, loading and unloading operations, storage of goods, insurance of cargo transportation, registration of logistics documents (if they increase the cost of goods), fines and downtime fees, etc. (all costs, which fall on the cost of goods in the process of delivery, the allocation of a separate item for which is impractical).
Step 4
Second group: commercial transportation costs. These include the costs of delivering the goods by your own or rented transport to the client and to the company, transport costs associated with moving the goods from one warehouse to another (internal delivery).
Step 5
The following items can be distinguished in the budget for these expenses: "Internal delivery" without detailing into articles, "Delivery of goods to consumers (including branches)". The second article is detailed into the following subsections: freight forwarding services, loading and unloading operations, cargo examination, cargo transportation insurance, fines and demurrage fees, etc.
Step 6
It may seem that these subentries duplicate other subentries highlighted in the article "Procurement of goods and delivery to the warehouse", but this is not the case. It should be borne in mind that the article "Procurement of goods and delivery to the warehouse" is located in the section "Costs of core business". It belongs to the group of articles "Payment for goods, works, services". And the articles "Domestic delivery" and "Delivery of goods to the consumer" are also located in the section "Costs of core business", but refer to the group of articles "Commercial expenses".
Step 7
The third group: expenses for the maintenance of personal vehicles of the founders or traveling vehicles used for official purposes. This article is located in the section "Costs of primary activities" and refers to the group of articles "Administrative and administrative expenses" or "Commercial expenses".
Step 8
If you intend to separate the expenses for the maintenance of personal vehicles of the founders and the costs of traveling transport, then the founders can be included in the "Administrative and administrative expenses" group, and the traveling expenses - in the "Commercial expenses". Although this is not fundamental. In order not to complicate the budget, it is worth making one item "Expenses for the maintenance of official vehicles", which is in the section "Business expenses".
Step 9
But what is important is this: it is important to separate the transport costs, which affect the cost of the cargo, from commercial transport costs and then - from "all other" transport costs. It is also important to correctly classify "all other" costs by meaning. Thus, the BDDS needs an article "Expenses for the maintenance of official vehicles", which can be detailed in a sub-article: fuel; consumables, repair, feasibility study, washing; garage and parking services; insurance, alarm; other.
