What account code do I use for software and hardware purchases?

Question asked by Maria Ingold 10 years ago

Hi,

I'm still adding historic stuff. What a way to spend a rainy bank holiday.

I have some low-value purchases for hardware and software I need to add on expenses. In my previous software it was flagged as Computer Equipment Additions. This seemed to be something different than the value of software and hardware that was high and amortised / depreciated.

  1. What account / nominal code do I use for low-value purchases?

  2. For high-value purchases do I use the account / nominal code: Plant & Equipment? Does that amortise / depreciate automatically? Over what term?

  3. I heard from my previous accountant that the value is roughly £250 for the split between the two types. Do others on here concur?

Kindest regards, Maria

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6 Replies

Hi Maria,

Fixtures and fittings is probably the best of the existing account codes. If not, you can always create your own codes which best represent what you are after.

Chris

Best answer
10 years ago

Hi,

If anyone could help me on this, I'd appreciate it. Usually there is already a nominal code for this.

10 years ago

Hi Maria,

Fixtures and fittings is probably the best of the existing account codes. If not, you can always create your own codes which best represent what you are after.

Chris

Best answer
10 years ago

Thank you Chris.

I'm confused though. That's under Fixed Assets / Depreciation, which I thought was for things that depreciate - big stuff like computers, printers etc. I think that's Capex?

Not a £10 piece of software or a plug. I think that can be Opex? Although it's life can be over 1 year.

I would have thought that many people needed this setting. What are others doing?

Kindest regards, Maria

10 years ago

I think it is quite a good idea to set up an account code called IT/Computer Equipment and then it doe exactly as you want.

10 years ago

Thanks Chris.

What category is that supposed to go under? I saw somewhere else that you're not supposed to add anything under Adminstrative Expenses. So does that go under Other Expenses?

Kindest regards, Maria

10 years ago

I would say so Maria.

That sounds like it would be the best fit for me.

10 years ago

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