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Accounting For Customer Support

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Is there any guidance on where customer support payroll expenses should go - COGS or Opex? We do not manufacture products, but the business is a subscription box rental company. Our operations/fulfillment payroll expenses are included in COGS but don't have clear guidance on where customer support payroll expenses should be classified.

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Hi Rachel
What does Customer Support do in your business? Some companies see them as (a) Sales order entry, (b) post sales support/customer service or (c) both.

Either way, look at COGS = cost of getting goods to point of sale. That, in my view, means customer support are either a selling expense or an opex. They are not involved in "getting goods to point of sale."

(Agent, JKS Solutions, Inc.) |

Thanks Len. The function responds to customer inquiries which consist of canceling memberships, issuring refunds, sending replacement products if their items are damaged, etc.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
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(President & CFO, SBAConsulting.com) |

I would place in G&A.

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