Terms of delivery of goods is an agreement between buyer and seller on the spot to deliver the goods receipt yag sale. Delivery of goods is carried out after price agreement is obtained and the amount of goods. In terms of delivery is listed parties who bear the cost of shipping goods from warehouse to warehouse sale purchase.
The terms of delivery of the goods that are common in the trade as follows:
A. Franco Warehouse Sales (Free On Board Shipping Point)
Franco Warehouse sale (Free On Board Shipping Point) means that the seller delivers all the goods sold to the buyer at the sale barn. So in this case, the recording of transactions and the transfer of ownership of goods is recognized from the sale barn. Buyers should bear the cost of shipping goods from warehouse to warehouse their own sellers. If the journey there is damage or loss arising from the losses incurred by the buyer.
B. Franco Warehouse Purchasers (Free On Board Destination Point)
Franco Warehouse Purchasers (Free On Board Destination Point) means that the seller delivers the goods sold to the buyer at the buyer's warehouse. In this case, the sale and transfer of ownership into the hands of new buyers is recognized after the goods until the buyer's warehouse. Any costs incurred for shipping the goods to the warehouse until the buyer, the seller paid.
C. Cost Insurance and Freight (CIF)
Cost Insurance and Freight (CIF) that is, the seller must bear the burden of freight and premium asuansi loss on the goods. CIF is usually done in terms of export and import transactions.
Transactions that occur in the trading company
Transactions that occur on a trading company of which you can know the following:
A. The merchandise purchases (Purchases)
Purchases of merchandise can be made in cash and credit SCARA. Merchandise purchases recorded in the purchase of the purchase price. If the purchase of merchandise in cash, recorded in the purchase of next debit and credit accounts next debt. But when the company purchased the office equipment that is the account debited office equipment instead of purchasing accounts.
B. Return of the purchased merchandise returns and reduction of the purchase price (Purchases returns and allowances)
Purchased merchandise is sometimes not in accordance with the order or in a state of defective or damaged shingga had to be returned. The purchase of this merchandise to reduce the amount of the debt if the purchase is made on credit. In certain circumstances may a debt reduction is not offset by the return of goods for consideration of the cost of return greater than the price of goods or other factors.
If the return item or request a price reduction occurs, the buyer must make a record of evidence in the form of a debit note or debit memo to the seller. Debit memorandum recording by the purchaser will be recorded on accounts payable debit side, whereas purchase returns and price reductions next credit.
C. Payment of transportation costs of purchased goods (freight in)
Pieces are obtained if the buyer purchases qualify for a discount. Therefore, the repayment of note receivable, if the buyer a discount or not. Purchase pieces acquired by the purchaser recorded in the accounts payable account in debit and credit purchase pieces at redemption.
E. Pieces purchases (Purchases Discount)
Direct-duty paid on account of the buyer will be noted next to the cost of debit and credit side of cash account. Load transport is the responsibility of the buyer but in practice do put on sales and purchase invoices, will increase the amount of debt and recorded under the purchase of right-duty accounts payable debit and credit side.
F. Merchandise Sales (Sales)
Sales of merchandise can be made in cash or on credit.
The amount of money stated at the price agreed upon between buyer and seller.
The seller in cash is usually performed by a retail merchant (retailer), such as department stores, stores, retail stores, small shops and other stores. Sales on credit are recorded in accounts receivable debit side and credit side of sales account.
G. Acceptance of returned merchandise sold purchase returns and price reductions (sales returns and allowances)
If the goods have been sold readmitted damaged in transit or due to other things and the seller agree to return the goods, the seller will issue a credit memo or credit note addressed to the purchaser upon receipt of returned goods have sold it.
Based on these credit notes, the seller will be recorded in account sales returns and price reductions of debit and credit accounts in accounts receivable.
H. Payment of expenses of conveyance of goods sold (Freight out)
Transport burden of this sale by the seller of conveyance is recorded in an expense account and debit sales in accounts payable account in credit. If the sale in cash, the sale will record an expense account transport and sale of next debate next cash credit account.
I. Pieces of Sales (Sales Discount)
Trade discount is a cash discount given by the seller to the buyer because the buyer meets the requirements of the agreed or buyer to pay off debts on the long term. The amount of cash discount under an agreement the buyer and seller are defined in terms of payment.
Pieces of sales, sales returns and discounts is a contra account of sales revenue account, which will reduce the amount of income earned by the company.
The seller will record the number of pieces given to the buyer in the trade discount accounts in debit and credit accounts receivable at.
