Announcement

Collapse
No announcement yet.

Accounting - Bottle deposit/return

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Accounting - Bottle deposit/return

    Wondering if anyone is familiar with general accounting principles involved with investing in and maintaining a reusable/returnable bottle float.

    Our accountant tried to explain it to me the other day but it didn't go so well.

    I'm no trying to re-invent the wheel, just trying to see how it is all accounted for.

    I'll give a hypothetical...

    1/ I pump 10000 bottles into the marketplace as new glass. My cost is 14 cents per.
    2/ I charge consumers 10 cents per package for deposit.
    3/ Consumers return the glass for deposit return.
    4/ Certain percentage doesn't ever come back (broken, lost, landfilled, collected, used for homebrew, etc.)
    5/ I pump another 10000 bottles into the marketplace.

    etc...

    Trying to understand how this is dealt with on the books. Someone else takes care of this in our company, I'm just trying to comprehend...

    Any help appreciated...

    I'm looking at you Nateo...
    Last edited by liammckenna; 12-06-2013, 10:49 AM. Reason: repetitive, redundant language use
    Liam McKenna
    www.yellowbellybrewery.com

  • #2
    At one brewery I worked at, they never claimed a portion of the deposit account as profit, and as such, got dinged heavily after 14+ years in business when the account that their deposits were credited to showed a huge number outstanding on their books. It was on the books like they had millions of bottles in stock, which of course, we all know isn't possible for a brewpub.

    At the brewery I have now, we claim a portion of the unreturned bottle deposits per year as profit to avoid getting dinged with a huge tax bill in the future. It's not really magic math, it's just accounting for the lost bottles from your chain somewhere. After a few years of being open, the number is surprisingly steady and you can only count on XX% of the bottles actually coming back. The percentage is different for every pub/brewery depending on how good you/your customers are at getting them back.

    PS. if you want your stout bottles back that our buddy Rick has been bringing for us, you're gonna have to come get em' yourself. Ha Ha!

    Comment

    Working...
    X