Hi:
My client started using Skip, Uber and door dash last year, and the fees are significant. It was recorded as credit card fees on its book, which I don’t like because it’s more than doubled their credit card expense from last year with lower revenue.
I checked the GIFI listing, but can’t find an appropriate section for it. I am thinking maybe it should go to 8717 under collection and credit costs, or just to cost of sale under 8461 overhead expenses
Any thoughts? Thanks
i would and have used 9275 delivery expenses
I book it to GIFI Code 8450 - Other direct costs
I thought about delivery fee too, but same reason I thought it wouldn’t be a good fit under credit card charges, there are more to it than delivery and accepting payment, so I think other direct costs under 8450 or 8461 might be where I am putting it under.
Thanks
Given that CRA only uses GIFI codes for audit selection, I wouldn’t be too fussy about where it goes. Even though doubled, it’s a fair bet that everyone’s costs went up over the pandemic for credit card fees, delivery fees and all kinds of similar things. Once they put it into the giant SQL server in the CRA-sky the differences are fairly meaningless.
I’ve seen lots of returns (from CPAs!) that just report total income, total expenses, total assets, total liabs…no real detail at all. Doesn’t seem to worry CRA, or at least hasn’t in the past, which seems a bit odd to me.
I’m personally only fussy about those things that point to audit-potential areas.
Just one guy’s opinion. 
I’m with Shaun & Jeff on this one - it definitely belongs in COS as it’s fully variable based on related revenues. Suggest your client put a new column (and maybe a reconciliation tab) for this in their book, it’s not a cost that’s going away in the foreseeable future…