Entity: CARRIAGE-INWARDS
Carriage-inwards refers to the transportation costs incurred by a purchaser when receiving goods from a supplier. It includes expenses related to air freight, road transport, or sea freight added to inventory costs.
Carriage-Inwards
Etymology
The term 'carriage-inwards' originates from the transportation industry, specifically in the context of logistics and accounting.
Definition
Carriage-inwards refers to the transportation costs incurred by a purchaser when receiving goods from a supplier. These costs typically include expenses related to air freight, road transport, or sea freight, which are added to the overall inventory costs.
Historical Context
The concept of carriage-inwards has been a fundamental aspect of trade and commerce for centuries, evolving alongside advancements in transportation and logistics.
Cultural Significance
Carriage-inwards plays a crucial role in the supply chain management of businesses, impacting financial accounting, inventory valuation, and overall profitability.
Related Concepts
Carriage-outwards is a related concept that involves the transportation costs incurred by the seller to deliver goods to customers, contrasting with carriage-inwards which focuses on the purchaser's transportation costs.
See Also
- Jones Elite Logistics - What is Carriage Inward?
- AccountingCoach - What is carriage inwards?
- GeeksforGeeks - Carriage Inwards: Meaning, Accounting, Examples, Impact & FAQs
- Vedantu - Carriage Inwards vs Carriage Outwards: Impact and Profitability
- AccountingTools - Carriage inwards and carriage outwards
Carriage-inwards encompasses the freight transportation costs paid by a purchaser to receive goods, including expenses for air freight, road transport, or sea freight.