I have a question regarding the treatment of GS1 barcode costs for our small business.
These barcodes are purchased in sets, with an initial payment to reserve them and subsequent annual renewal fees to maintain their use. As the barcodes are mandatory for listing products for sale, they are required for our business operations.
We initially acquired a set of 10 barcodes but have only utilized 2 barcodes to label our products. However, no units have been sold as of yet.
My questions are:
1- how should we treat the initial reservation cost and the ongoing renewal fees?
2- Additionally, does the fact that only 2 out of the 10 purchased barcodes are currently being used affect their treatment?
Thank you for your assistance!