Does your unit purchase goods which are held for resale purposes? If so, remember to use expense account code 187100, Purchase of Goods for Resale when making these purchases. This will help ensure that the related expense is properly classified for financial statement reporting purposes.
- For example, if you purchase merchandise, supplies, books, publications, or some other type of tangible property which you plan to sell to your customers as a part of a self-supporting operation, then the 187100 expense account code should be used when making additional purchases of these items.
- However, if you are purchasing consumable supplies that will simply be used as a part of your daily operations and which will not be held for resale, then you’d need to use a consumable supplies expense account code instead (such as 121100, Consumable Office Supplies for purchases of copy paper used for the office printer).
For questions related to this topic, refer to the Account Codes section of UAFR’s Who to Ask list.