Recording materials used in construction of an asset

Faith McCallum

I am using Reckon Desktop Accounts Premier 2015. We are building a new shed (ourselves, so no labour expenses, only materials) on our property for our Engineering Business.  I know that the building when complete will need to be added as a Fixed Asset however how do I record the purchases of steel etc for the build - are they an expense or do they go under the Asset Account for the building? Thanks in advance.

John Graetz

Hi Faith.  The usual way would be to record all costs to your Fixed Asset account straight away as it is a capital cost..  If you wanted to easily track these costs, you could set up the Shed as a sub account of your Fixed Assets Account,
John L G