[GNC] Another "multi-account" logical issue - any advice on how to register this?

[Bruce Griffis]

Or in the case of reselling (which really is what we are doing when buying
an item and eventually selling it) - I bought some diecast cars off an
online seller. The price of each unit came in where I could make a profit
selling it.

However, each item had taxes, shipping and handling. And in reselling each
item there are final value fees and transaction fees. Even if I don't offer
free shipping, I do have to pay for a box, bubble wrap and tape. If I don't
have USPS do a scheduled pickup, I have the cost to bring the package to
the post office.

A 12 dollar item quickly turns into a 24 dollar item just to get it to me.
If I were to sell it, it needs to be at a minimum a 30 to 32 dollar item
just to break even.

If I need to pay 24 dollars just to get a 12 dollar item, it had better
have a value of 24 dollars just to sit on a shelf and look at it. I might
be wrong, but I'd consider my cost of goods sold to include the costs
associated with putting that item in my hands. And expenses out of that
sale would be my shipping, final value fee, transaction fee and shipping
supplies to get that item to a customer. Any profit (or loss) would be the
difference between these sets of value.

I learned that the hard way by bidding high on online auctions and have a
few too many items I'll never sell for cost.

A US based tax accountant could steer me in the right direction if I am
completely misunderstanding it, but I'm wading through books to get a
better understanding.

On Wed, Oct 2, 2024, 10:29 AM Chris Miller via gnucash-user <
gnucash-user at gnucash.org> wrote:

> Hi Flavio,
>
> > I will think about whether I want to consider the shipping expense as
> part
> > of the value of the goods I bought or not. I understand the difference
> and
> > keeping shipping costs separated from the goods value looks correct to
> me.
> > However, I always considered shipping costs as part of the goods value. I
> > thought "I paid 220 for this guitar, even though 20 are for shipping, so
> to
> > me it's worth 220" (I know this is wrong, because shipping doesn't add
> > value to the goods).
>
> It is not wrong. Shipping does add to the value. The difference between
> potatoes in a field and potatoes in a store is basically shipping. You pay
> more for potatoes in a store because there is a cost to get them there.
>
> You paid $200 for the guitar and $20 for shipping. If you sold the guitar
> for $200, are you breaking even?
>
> The book value of an asset is the cost to acquire and deploy that asset.
> Shipping is clearly an acquisition or deployment cost.
> --
> Chris.
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