Accounting For Office And Administrative Supplies

accounting

Companies are usually prepared to buy office supplies as well as administrative supplies : reams of paper, letterhead, ink cartridges or printer toner … These assets generate accounting treatment specific. Compta-Easy  presents it and answers the question: how to account for office supplies and administrative supplies?

 

Accounting for the purchase of office and administrative supplies

All office supplies and administrative supplies are consumed entirely during their first use and instantly disappear after use. They represent what are known as accounting jobs and are recorded in expense accounts (Class 6 accounts “Expenses”) and more particularly in account 6064 “Administrative supplies” .

Attention, different rules apply with regard to office furniture and computer equipment (computer, printer, tablet, smartphone). In most cases they must be locked-in, ie registered in an account in class 2 “Fixed assets” and specifically in account 2184 “Furniture” or account 2183 “Office equipment and computer equipment” . However, there are exceptions, particularly for low-value goods that can be expensed and immediately deducted in the income statement.

 

The following is the accounting entry for an invoice for the purchase of office and administrative supplies :

We debit :

  • Account 6064 “Administrative supplies”
  • Account 44561 “VAT deductible on other goods and services”
  • And account 401 “Suppliers” is credited .
  • At the time the invoice is paid:
  • Account 401 “Suppliers” is debited ,
  • And account 512 “Bank” is credited .

 

Example: a company buys paper reams for an amount of 300 euros excluding taxes on 15/01. To this amount is added the VAT for 60 euros that the company is able to recover from the Public Treasury. The invoice is paid on 31/01 / N by check. The following entry will be recorded in a purchase journal on the 15/01/05:

Debit from Account 6064 “Administrative Supplies” for € 300,

Debit from account 44561 “VAT deductible on other goods and services” for € 60,

And credit of account 401 “Suppliers” for 360 €.

At 31/01 / N, in his bank journal this time, the company should record the following entry:

Debit from account 401 “Suppliers” for 360 €,

Account credits 512 “Bank” for 360 €.

Accounting for regularization of unused office and administrative supplies.

At the close of each of its accounting periods, any business (merchants, craftsmen and industrialists, except the liberal professions authorized to keep only cash accounts) must carry out inventory work . In particular, they consist of identifying all the assets in the company, in terms of quantity ( physical inventory ) and value ( inventory valuation ). Office and administrative supplies are not exempt from this rule, but there is a nuance given the “non-storable” nature of these charges. Instead of recording inventory for the fraction corresponding to supplies not consumed at the end of the financial year , It will be necessary to record a pre – determined charge . Here is the writing to go into accounting :

  • Account 486 “Deferred charges” is debited ,
  • And account 6064 “Administrative Supplies” is credited .
  • This writing must be reversed at the opening of the following fiscal year (we speak of reversals in accounting ):
  •  Account 6064 “Administrative Supplies” is debited ,
  • And account 486 “Prepaid expenses” is credited .

 

Example: a company buys 20 printer toners at 100 euros duty-free unit. She receives them on 25/06 / N. It closes its financial year on 30/06 / N, realizes its inventory and realizes that it has not used any. The purchase invoice was correctly posted to 25/06 / N. As of 30/06 / N, the company must therefore recognize prepaid expenses in a journal of miscellaneous operations:

  • Debit from account 486 “Prepaid expenses” for € 2,000,
  • Credit for account 6064 “Administrative supplies” for € 2,000.
  • The initial charge of 2,000 euros is thus completely offset in the income statement (2,000 – 2,000 = 0).

 

Conclusion: Purchases of office and administrative supplies are recorded in account 6064 “Administrative supplies”. At the end of the financial year, when their amount is significant, unused supplies give rise to prepaid expenses (CCA).

The Sellers Techniques To Make You Buy More (And How To Counter Them)

For this article, we find Yassine  who will show you the main principles of Sellers Techniques, so that you do not feel helpless when you are sold.

BonneGueule usually teaches you to know as much as sellers (sometimes even more), but it is also useful when you start to know the great Technique de vente. That’s why we invited Yassine to talk about it. Yassine, it’s yours!

After a seller’s advice to me speaking “spring inspiration” to justify the price too high of a simple blue chino, I thought to myself that an article devoted to their techniques became indispensable.

Note that the purpose of this article is not to get sellers for manipulators willing to sell you anything to get a commission. Some sellers are really passionate about their work and will not hesitate to tell you about their collection in detail (for the Parisians, I invite you to take a ride at Elevation to really become aware of what a good seller is).

Note from Geoffrey: Among the best advisers in store, I also emphasize the professionalism of the staff of RoyalCheese, FrenchTrotters , Shopping Center, Melinda Gloss , and Ly Adams . And I forget many others!

While your goal is mainly to find the piece at best value for money, with always the assurance of advancing your style.

It is extremely rare to see a salesman tell you that ”  this piece is too precious compared to your style “, or that ” these shoes do not fit your personality  “. Conversely , he will worry especially about the size with the famous ”  you feel how in it ? “. Some sellers, obsessed by their commission or pressed by their manager to make the number, will forget your interest and will push you to buy something that does not suit you: they are the bad sellers (rare, fortunately).

It is essentially from them that we will speak. But first, let’s put ourselves in the shoes of a salesperson. Nothing like this to better understand his motives. From the way he welcomes you in the shop at the moment when he lets you leave, there are different steps impossible to circumvent for him …

 

The Steps Of Selling For A Seller  (By Geoffrey):

The same steps are always found during the relationship with the seller. At the same time, all sellers do not take it equally: there are the good, and sometimes the bad. Please note that you will rarely find bad sellers in the good shops that distribute the brands we advise . Very often, everything is bound!

Home

The good seller: He is present but does not impose himself: he greets you, and that’s all. He then stays attentive, and waits for you to solicit it. He only intervenes if he sees you in search of something, or with a puzzled look at a garment.

The bad seller: He comes straight to you, with one: ” If you need something, do not hesitate . ” Or worse, because even more aggressive : ” How can I help you ?” It’s as if you were not allowed to be just curious, and we often know from the start whether you’re going to get bothered, or to be positively supported by a salesperson.

 

Linking

The good seller: Once the exchange starts, it is at your listening. He speaks little. He is more of an assistant than a consultant. He simply gives you information, to let you face a choice, of which only you have the full decision: ” this item also exists in blue, it is in the reserve  ” , ” on this garment, there is a cordon Tightening to protect well from the cold  ” ,” this shirt waists very wide at the level of the shoulders  ” .

 

The bad salesman: It is positioned from the start as an expert: it is he who is right. If you do not follow his / her purchase recommendation, you are wrong. It does not let you go for a second, you drown under the information.

 

Fitting

The good seller: It’s simple: it leaves you peace. Better: if he sees that it is not the right size, he tells you. He does not compliment you: he has enough confidence in his cam.

The bad seller: During the fitting, he continues to make you drink the cup under the generalities. With pseudo-science of clothing and holy tendency, but also by compliments. Yes, it sounds wrong, and that’s normal. He will also direct his speech to divert you from what is wrong with the garment and try to prove to you that it is normal with big declarations: ” it is a style a little wide “.

 

Closing

The good seller: He lets you finish, and asks politely: ” Do you take it? ”

The bad salesperson: Very soon, he goes on to follow up, assuming that you have decided to buy the garment: ” I’ll put it in a bag right away . ” When it’s a costume, Jumping on it to make the retouch.It also tells you of a supposedly good deal, or that it is the last piece.

 

 Fidelity

The good seller: He let you know that you can come back to the slightest problem, and wish you a good day.

The bad seller: Once he made you buy all he had to sell you, he will continue to compliment you on your choices. Why ? So that you do not rationalize too much back home, telling yourself that you have let yourself go too much, which could lead to a return of the merchandise.

Be attentive to all these signs: try to distinguish the good and the bad sellers!