5. Cost of spare parts inventory

5.1 Spare parts inventory

The definition of maintenance stocks is not linked to the accounting position of the items.

Maintenance stock items can :

• be included in the balance sheet accounts

  • fixed asset accounts,

  • inventory accounts ;

• or not be valued in the inventory account and be charged at the time of purchase:

  • on the production accounting sections using the equipment (this solution, which exists in many companies, is not legal for tax purposes),

  • on a maintenance account (included in the hourly maintenance rate – solution for hardware,...