Building Work
Posted: 29 Feb 2016, 12:49
I'm surprised I couldn't find anything on the net about this. Maybe it's just me being thick.
I have a bill for building work which is capital work, i.e. demolition and building an extension. The items on the invoice are Demolitions, external works and prelims. I can't work out how to enter it. It's not repairs and renewals (or is it?) but it's not buying a fixed asset. None of the standard nominal codes seem to match. Is it an overhead or a direct expense? My thinking is repairs are overheads. This is work on a fixed asset, so it's probably a direct expense. And I probably need to set up a new nominal code but I'm not sure exactly how to do it. What's the debit and what's the credit?
Just as an aside, the nice thing about being a self employed/freelance bookkeeper, is you get experience in many different trades and using different software. I've worked for a few different companies over the past two years, but this is the first time this particular situation has come up.
I have a bill for building work which is capital work, i.e. demolition and building an extension. The items on the invoice are Demolitions, external works and prelims. I can't work out how to enter it. It's not repairs and renewals (or is it?) but it's not buying a fixed asset. None of the standard nominal codes seem to match. Is it an overhead or a direct expense? My thinking is repairs are overheads. This is work on a fixed asset, so it's probably a direct expense. And I probably need to set up a new nominal code but I'm not sure exactly how to do it. What's the debit and what's the credit?
Just as an aside, the nice thing about being a self employed/freelance bookkeeper, is you get experience in many different trades and using different software. I've worked for a few different companies over the past two years, but this is the first time this particular situation has come up.