When the buyer has more control on shipping, he can hire a freight company of his choice. At any point during the transportation, the buyer knows the status of the shipment since he is the central contact. Whereas, if the seller arranges for shipping, the buyer is not in direct touch wi...
Definition:Freight all kind (FAK) is a consolidated cargo that contains different kinds of goods but it is charged at one unique rate. In other words, a group of goods are pooled together for shipping purposes with no regard of their class. ...
Ex works (or EXW): This is a specific mix of FOB origin and FOB destination, where a seller prepares their goods for freight and the buyer pays for the actual transportation of the goods. This often links to international purchases, for example, where the costs of shipping can be greater...
the transportation of goods becomes increasingly complex and risky. Whether it’s by land, sea, or air, there is always a chance for unforeseen events that can result in loss or damage to the cargo. This is where freight insurance steps in. ...
Additionally, you must be transparent with your customers regarding shipping times, return policies, and any fees associated with their customer purchases. Handling customer returns efficiently is crucial for maintaining customer loyalty and a positive reputation. ...
Once the payment is processed, the “Accounts Payable” account is debited and the “Cash” or “Bank” account is credited, signifying the settlement of the debt and the reduction in your liabilities. Let’s say a bakery purchases flour from a vendor on credit. This is how the flour ac...
Centralized distribution centers and freight warehouses tend to be located away from residential areas. Instead, they are near airports, railroad terminals, ports, and major highway intersections. Local stores, on the other hand, are typically located where customers can find them—that is, in ...
Add up total purchases The total purchases are all the costs associated with buying goods during your chosen period, such as purchase price, freight costs, and other related expenses. Subtract closing inventory The closing inventory refers to any goods still in stock at the end of your chosen ...
Determine the cost of purchases of raw materials that were made during the period, taking into account freight in, trade and cash discounts. Determine the ending inventory balance. Typically, it’s based on physical cycle counts and is done in accordance with the company’s inventory-valuati...
Spontaneous or quick purchases Fixed pricing Low-volume orders Products are sold “as is” Immediate payment Simple shipment Simple/no paperwork B2B sales have the following complexities that differentiate them from the B2C model, which all need to be taken into consideration when building and managin...