{"id":94853,"date":"2026-04-16T13:09:38","date_gmt":"2026-04-16T11:09:38","guid":{"rendered":"https:\/\/dexxter.be\/goods-and-trade-goods-what-does-this-cover\/"},"modified":"2026-05-15T13:26:58","modified_gmt":"2026-05-15T11:26:58","slug":"goods-and-trade-goods-what-does-this-cover","status":"publish","type":"post","link":"https:\/\/dexxter.be\/en\/blog\/goods-and-trade-goods-what-does-this-cover\/","title":{"rendered":"Goods and trade goods: what does this cover?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">When you start entering your expenses, you\u2019ll be asked to select the cost category under which you want to record your expenditure. In this article, we\u2019ll discuss which expenses fall under the category of <strong>goods<\/strong> or <strong>trade goods<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are trade goods? \ud83d\udce6<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You purchase goods that you later sell <strong>directly<\/strong> to customers. This is the most obvious example of trade goods. However, goods that you sell <strong>indirectly<\/strong> to your customers are also trade goods, such as the ingredients or raw materials from which your sales items are made.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s not all, because you must also record the <strong>packaging and transport materials<\/strong> for your goods under the trade goods.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What falls under ingredients and raw materials? \ud83c\udf3e\ud83e\udea8<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Ingredients and raw materials are all the basic products from which you manufacture your product. For a chef, this ranges from the largest sacks of rice and potatoes to the smallest stock cube.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It goes a bit further, because actually all products that \u2018run out\u2019 and form part of the manufacture of your product or the provision of your services fall under this category.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here, too, the cleaning products used in a car wash, the gel polish used by a nail stylist, the biscuits served with coffee at a trendy coffee bar, and even the nails used by a carpenter are included.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<style>.kb-row-layout-id79940_2b0abf-d7 > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id79940_2b0abf-d7 > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id79940_2b0abf-d7 > .kt-row-column-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:var(--global-kb-gap-md, 2rem);grid-template-columns:minmax(0, calc(35% - ((var(--global-kb-gap-md, 2rem) * 1 )\/2)))minmax(0, calc(65% - ((var(--global-kb-gap-md, 2rem) * 1 )\/2)));}.kb-row-layout-id79940_2b0abf-d7{border-top-left-radius:20px;border-top-right-radius:20px;border-bottom-right-radius:20px;border-bottom-left-radius:20px;overflow:clip;isolation:isolate;}.kb-row-layout-id79940_2b0abf-d7 > .kt-row-layout-overlay{border-top-left-radius:20px;border-top-right-radius:20px;border-bottom-right-radius:20px;border-bottom-left-radius:20px;}.kb-row-layout-id79940_2b0abf-d7{background-color:#f0f4ff;}.kb-row-layout-id79940_2b0abf-d7 > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id79940_2b0abf-d7 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr) minmax(0, 2fr);}}@media all and (max-width: 767px){.kb-row-layout-id79940_2b0abf-d7 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}<\/style><div class=\"kb-row-layout-wrap kb-row-layout-id79940_2b0abf-d7 alignnone kt-row-has-bg wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-2-columns kt-row-layout-right-golden kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n<style>.kadence-column79940_5e27d9-11 > .kt-inside-inner-col,.kadence-column79940_5e27d9-11 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column79940_5e27d9-11 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column79940_5e27d9-11 > .kt-inside-inner-col{flex-direction:column;}.kadence-column79940_5e27d9-11 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column79940_5e27d9-11 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column79940_5e27d9-11{position:relative;}@media all and (max-width: 1024px){.kadence-column79940_5e27d9-11 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column79940_5e27d9-11 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column79940_5e27d9-11\"><div class=\"kt-inside-inner-col\"><style>.kadence-column79940_4adfc4-59 > .kt-inside-inner-col,.kadence-column79940_4adfc4-59 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column79940_4adfc4-59 > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column79940_4adfc4-59 > .kt-inside-inner-col{flex-direction:column;}.kadence-column79940_4adfc4-59 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column79940_4adfc4-59 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column79940_4adfc4-59{position:relative;}@media all and (max-width: 1024px){.kadence-column79940_4adfc4-59 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kadence-column79940_4adfc4-59 > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column79940_4adfc4-59\"><div class=\"kt-inside-inner-col\">\n<figure class=\"wp-block-image size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/dexxter.be\/wp-content\/uploads\/2024\/06\/16.png\" alt=\"\" class=\"wp-image-40438\" style=\"width:189px;height:auto\" srcset=\"https:\/\/dexxter.be\/wp-content\/uploads\/2024\/06\/16.png 300w, https:\/\/dexxter.be\/wp-content\/uploads\/2024\/06\/16-150x150.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/figure>\n<\/div><\/div>\n<\/div><\/div>\n\n\n<style>.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{display:flex;}.kadence-column79940_fcbd78-ff > .kt-inside-inner-col,.kadence-column79940_fcbd78-ff > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{flex-direction:column;justify-content:center;}.kadence-column79940_fcbd78-ff > .kt-inside-inner-col > .aligncenter{width:100%;}.kt-row-column-wrap > .kadence-column79940_fcbd78-ff{align-self:center;}.kt-inner-column-height-full:not(.kt-has-1-columns) > .wp-block-kadence-column.kadence-column79940_fcbd78-ff{align-self:auto;}.kt-inner-column-height-full:not(.kt-has-1-columns) > .wp-block-kadence-column.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{flex-direction:column;justify-content:center;}.kadence-column79940_fcbd78-ff > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column79940_fcbd78-ff{position:relative;}@media all and (max-width: 1024px){.kt-row-column-wrap > .kadence-column79940_fcbd78-ff{align-self:center;}}@media all and (max-width: 1024px){.kt-inner-column-height-full:not(.kt-has-1-columns) > .wp-block-kadence-column.kadence-column79940_fcbd78-ff{align-self:auto;}}@media all and (max-width: 1024px){.kt-inner-column-height-full:not(.kt-has-1-columns) > .wp-block-kadence-column.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 1024px){.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}@media all and (max-width: 767px){.kt-row-column-wrap > .kadence-column79940_fcbd78-ff{align-self:center;}.kt-inner-column-height-full:not(.kt-has-1-columns) > .wp-block-kadence-column.kadence-column79940_fcbd78-ff{align-self:auto;}.kt-inner-column-height-full:not(.kt-has-1-columns) > .wp-block-kadence-column.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{flex-direction:column;justify-content:center;}.kadence-column79940_fcbd78-ff > .kt-inside-inner-col{flex-direction:column;justify-content:center;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column79940_fcbd78-ff\"><div class=\"kt-inside-inner-col\">\n<p class=\"wp-block-paragraph\">At Dexxter, we use the next rule of thumb for raw materials and ingredients:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Anything that is used up during the manufacture of a product or the provision of services falls under trade goods.<\/p>\n<\/div><\/div>\n\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Some examples \u2705\/\ud83d\udeab<\/h2>\n\n\n<style>.kb-table-container79940_b6595d-f2{overflow-x:auto;}.kb-table-container .kb-table79940_b6595d-f2 th{padding-top:var(--global-kb-spacing-xxs, 0.5rem);padding-right:var(--global-kb-spacing-xxs, 0.5rem);padding-bottom:var(--global-kb-spacing-xxs, 0.5rem);padding-left:var(--global-kb-spacing-xxs, 0.5rem);text-align:center;}.kb-table-container .kb-table79940_b6595d-f2 caption{text-align:center;}.kb-table-container .kb-table79940_b6595d-f2 td{padding-top:var(--global-kb-spacing-xxs, 0.5rem);padding-right:var(--global-kb-spacing-xxs, 0.5rem);padding-bottom:var(--global-kb-spacing-xxs, 0.5rem);padding-left:var(--global-kb-spacing-xxs, 0.5rem);text-align:left;}.kb-table-container .kb-table79940_b6595d-f2 tr:nth-of-type(even){background-color:#eeeeee;}.kb-table-container .kb-table79940_b6595d-f2 tr:nth-of-type(even):hover{background-color:#eeeeee;}<\/style><div class=\"kb-table-container kb-table-container79940_b6595d-f2 wp-block-kadence-table\"><table class=\"kb-table kb-table79940_b6595d-f2\">\n<tr class=\"kb-table-row kb-table-row79940_71a4c8-fa\">\n<td  class=\"kb-table-data kb-table-data79940_65aa85-77\">\n\n<p class=\"wp-block-paragraph\">Situation<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_b79e18-01\">\n\n<p class=\"wp-block-paragraph\">Trade goods?<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_e667c0-8e\">\n\n<p class=\"wp-block-paragraph\">Why?<\/p>\n\n<\/td>\n<\/tr>\n\n<tr class=\"kb-table-row kb-table-row79940_318bff-23\">\n<td  class=\"kb-table-data kb-table-data79940_d18231-d1\">\n\n<p class=\"wp-block-paragraph\">A market trader buys fruit which he sells directly to his customers at the market.<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_bc7fc5-08\">\n\n<p class=\"wp-block-paragraph\">\u2705<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_b0c484-90\">\n\n<p class=\"wp-block-paragraph\">Goods that he resells directly.<\/p>\n\n<\/td>\n<\/tr>\n\n<tr class=\"kb-table-row kb-table-row79940_b724b6-a1\">\n<td  class=\"kb-table-data kb-table-data79940_a2cc47-6d\">\n\n<p class=\"wp-block-paragraph\">A baker buys flour, milk and eggs for the cakes he makes and sells to his customers.<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_261385-66\">\n\n<p class=\"wp-block-paragraph\">\u2705<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_8143ba-1e\">\n\n<p class=\"wp-block-paragraph\">Ingredients and raw materials<\/p>\n\n<\/td>\n<\/tr>\n\n<tr class=\"kb-table-row kb-table-row79940_52e0f4-0f\">\n<td  class=\"kb-table-data kb-table-data79940_59d1e5-a9\">\n\n<p class=\"wp-block-paragraph\">That same baker buys cake boxes and bread bags to pack his bread and cakes.<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_35b50c-45\">\n\n<p class=\"wp-block-paragraph\">\u2705<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_d7c5a2-ca\">\n\n<p class=\"wp-block-paragraph\">Packaging materials<\/p>\n\n<\/td>\n<\/tr>\n\n<tr class=\"kb-table-row kb-table-row79940_5d2483-79\">\n<td  class=\"kb-table-data kb-table-data79940_8fd0c8-0f\">\n\n<p class=\"wp-block-paragraph\">A plumber buys a hammer which he uses to install bathrooms.<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_366ea5-7a\">\n\n<p class=\"wp-block-paragraph\">\ud83d\udeab<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_fdc6c6-ef\">\n\n<p class=\"wp-block-paragraph\">Small materials<\/p>\n\n<\/td>\n<\/tr>\n\n<tr class=\"kb-table-row kb-table-row79940_2e32d2-8e\">\n<td  class=\"kb-table-data kb-table-data79940_a94e49-af\">\n\n<p class=\"wp-block-paragraph\">That same plumber buys screws and bolts to install that same bathroom.<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_b9a675-85\">\n\n<p class=\"wp-block-paragraph\">\u2705<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_35c03e-bb\">\n\n<p class=\"wp-block-paragraph\">Raw materials<\/p>\n\n<\/td>\n<\/tr>\n\n<tr class=\"kb-table-row kb-table-row79940_29bef0-63\">\n<td  class=\"kb-table-data kb-table-data79940_2629c7-87\">\n\n<p class=\"wp-block-paragraph\">A domestic helper buys products to clean floors.<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_4574d6-00\">\n\n<p class=\"wp-block-paragraph\">\u2705<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_f402e5-d4\">\n\n<p class=\"wp-block-paragraph\">Raw materials<\/p>\n\n<\/td>\n<\/tr>\n\n<tr class=\"kb-table-row kb-table-row79940_cb0c0f-5c\">\n<td  class=\"kb-table-data kb-table-data79940_5bf931-26\">\n\n<p class=\"wp-block-paragraph\">An online seller of marbles buys bags and boxes to send his items to his customers.<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_dd32d1-c9\">\n\n<p class=\"wp-block-paragraph\">\u2705<\/p>\n\n<\/td>\n\n<td  class=\"kb-table-data kb-table-data79940_e4179a-2e\">\n\n<p class=\"wp-block-paragraph\">Transport materials<\/p>\n\n<\/td>\n<\/tr>\n<\/table><\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As you can see above, our plumber\u2019s hammer is therefore not a trade good. Our plumber does, however, use that hammer at the customer\u2019s premises; in a sense, that hammer is even necessary to install the bathroom.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But that hammer has not left our plumber\u2019s business once he has finished at the customer\u2019s premises. The screws and bolts, on the other hand, have; they were used in the customer\u2019s bathroom and are now no longer part of our plumber\u2019s business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So we <strong>record the hammer as \u201cmiscellaneous small purchases\u201d<\/strong> or a custom cost category. Whereas the <strong>screws and bolts are recorded as \u201cgoods\u201d.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Inventory \ud83e\uddfe<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you have trade goods in your accounts, you must also keep track of your inventory. Here, the value of the inventory is mainly concerned. At the end of each year, you must enter your closing inventory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the value of all your unsold trade goods. You carry this value forward to your next financial year, so that only the costs of the trade goods you have purchased are recorded in your accounts in the year you actually sell them. This provides a clearer picture of your overall profit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Want to know more?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Find more information about inventory in <a href=\"https:\/\/dexxter.be\/en\/an-inventory-in-your-accounts\/\">this article<\/a> from our learning center.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Everything at a glance \ud83d\udccb<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here is a brief summary of the costs that fall under the \u2018trade goods\u2019 category:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>products you have specifically purchased to sell (after processing)<\/li>\n\n\n\n<li>ingredients, raw materials\u2026 Anything that forms part of your trade goods<\/li>\n\n\n\n<li>packaging of goods<\/li>\n\n\n\n<li>transport materials for your goods<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Useful URLs \ud83d\udd17<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/dexxter.be\/en\/what-is-the-professional-use-of-an-expense\/\">What constitutes professional use of an expense?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/dexxter.be\/en\/120-cost-deducation-e-invoicing\/\">120% cost deduction for e-invoicing<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/dexxter.be\/en\/is-empty-goods-a-cost-for-your-accounts\/\">Is returnable packaging a cost for your accounts?<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you start entering your expenses, you\u2019ll be asked to select the cost category under which you want to record your expenditure. In this article, we\u2019ll discuss which expenses fall under the category of goods or trade goods. What are trade goods? \ud83d\udce6 You purchase goods that you later sell directly to customers. This is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":94207,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-94853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-professional-costs"],"_links":{"self":[{"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/posts\/94853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/comments?post=94853"}],"version-history":[{"count":1,"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/posts\/94853\/revisions"}],"predecessor-version":[{"id":94854,"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/posts\/94853\/revisions\/94854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/media\/94207"}],"wp:attachment":[{"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/media?parent=94853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/categories?post=94853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dexxter.be\/en\/wp-json\/wp\/v2\/tags?post=94853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}