Usually, any sales invoice that includes the terms of delivery of the goods agreed between the seller and the buyer, and among these conditions is the determination of the place of delivery of the goods and the party who should bear the costs of transporting and shipping the goods from the seller’s stores to the buyer’s stores. And when the transportation expenses are proven in the books of both the seller and the buyer, the matter requires the accountant to distinguish between the cases, and one of the most important conditions for the delivery of the goods in internal or local trade within the state itself.
The Buyer Pays Transportation Costs
Note that there are no restrictions in the books of the seller, as the terms of delivery require the buyer to pay the transportation costs and he has already paid them.
The accounting entry is from the costs of transferring purchases to cash / bank account
The Condition of Delivery
Delivery terms require the seller to bear the entire transportation costs, except that the buyer has made the payment on behalf of the seller
The condition of delivery to the seller’s stores, while paying the transportation expenses
Delivery terms require that the buyer be charged with all transportation costs, except that the seller has paid on behalf of the buyer and the accounting entry in the seller’s books is from the customer’s account to the cash/bank account and in the buyer’s books from the expenses of transporting purchases to suppliers.
Delivery condition of the buyer’s stores and the seller’s payment of transportation expenses
The seller bears the transportation costs and as long as he has already paid them, there is no record in the books of the buyer in this case.
The entry in the seller’s books shall be expenses, and it should be noted that the transportation costs for the buyer are considered part of the purchasing costs.
As for the seller, those expenses are part of the selling expenses.
Also read: The Importance of Seaports
Also read: Sea Ports Management
اقراء المقالة باللغة اخرى : العربية