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We have started a BBQ business as a secondary occupation and purchase all kinds of ingredients to process into dishes. We process everything we purchase.
The question I cannot find a clear answer to is whether we should record the purchases of these ingredients as “Merchandise” or as “Services”.
The explanation I can find here on Dexxter about “trade goods” is that it is purchased and resold UNPROCESSED. That is not the case for us.
But recording them as a “service” doesn’t make sense to me.
Does anyone have a close answer?
Thank you