James Miller’s Post

When discussing Free on Board (FOB) from the vessel's perspective, it's essential to understand the responsibilities and implications involved. In an FOB transaction, the seller is responsible for delivering the goods to the vessel nominated by the buyer at the named port of shipment. Once the goods are on board the vessel, the risk of loss or damage transfers from the seller to the buyer. From the vessel's perspective, FOB terms require coordination with the seller to ensure that the goods are loaded safely and securely. The vessel's crew must follow proper loading procedures to avoid damage to the goods and ensure they are stowed correctly for the voyage. FOB transactions also involve the preparation and signing of the Bill of Lading (B/L), which serves as a receipt for the goods and a contract of carriage between the shipper and the carrier. The B/L is a crucial document that must accurately reflect the quantity, description, and condition of the goods loaded on board. Additionally, the vessel's crew must comply with any instructions or requirements specified by the seller regarding the loading of the goods. This may include providing the seller with documentation such as a Mate's Receipt, which confirms that the goods have been loaded on board the vessel. Overall, from the vessel's perspective, FOB transactions require careful attention to detail and adherence to proper procedures to ensure the successful and safe loading of goods for transport to their destination.

Freight, Audit & Bill Pay: Nobody said it was glamorous, but it saves our partners $$$. Eliminates incorrect billing and increases cost-savings. Saves your AR and AP multiple hours of manual auditing per work through invoice automation and processing. Reviews current carrier rates and compares them with accepted rates in our network.

Do you know the difference between a - prepaid account terms for purchasing before shipping - shipper will pay for shipping but will ask for payment afterwards - pay with terms - disregard terms written and pay upon our terms even if it's for shipping Sometimes it's a matter of communication of details briefly of negotiations sometimes it's about knowing what the terms even mean and how to handle accounts financially in the books

Invoice issuance requirements based on Section 31(1) of the Act: Goods Involving Movement: When: At or before the removal of goods. Goods Not Involving Movement: When: At or before delivery to the recipient. Continuous Supply of Goods: When: Before or at the time of issuing a periodical statement or receiving a periodical payment. Approval for Sale/Return Basis: When: Before or at the time of supply, or within 6 months from removal, whichever is earlier.

PREPAYMENT INVOICE: Whatever the advances we are giving to the supplier, that record we will maintain prepayment invoice. 1)Permanent Prepayment: It’s an advance payment which cannot be adjust against future Invoices. 2)Temporary Prepayment: It’s a advance payment which can be adjusted against future invoices Prepayment Payment Period Status- Before validation:Never validated After validation:Unpaid After pay in full:Unpaid After payment done:available If applied full amount:full applied Prepayment Entries: 1)At The Time Pre-Payment Creation: Dr is Prepaid exp a/c. Cr is Liability a/c 2)At The Time payment: Dr is Liability a/c Cr is Cash Clearing a/c 3)At the time of reconciliation: Cr is Cash Clearing a/c Cr is Cash A/c 4)at the time of standard invoice: Cr is Item exp a/c Cr is Liability a/c 5)Prepayment applied against invoice: Dr is Liability a/c Cr is PP expense a/c

PREPAYMENT INVOICE: What ever the advances we are giving to the supplier,that record we will maintain prepayment invoice. 1)Permanent Prepayment: It’s a advance payment which cannot be adjust against future Invoices.  2)Temporary Prepayment: It’s a advance payment which can be adjusted against future invoices Prepayment Payment Period Status- Before validation:Never validated After validation:Unpaid After pay in full:Unpaid After payment done:available If applied full amount:full applied Prepayment Entries:  1)At The Time Pre-Payment Creation: Prepaid exp-Dr Liability-Cr 2)At The Time payment: Liability Ac-Dr Cash Clearing Ac-Cr 3)At the time of reconiciliation: Cash Clearing Ac-Dr Cash Ac-Cr 4)at the time of standard invoice: Item exp-Dr Liability-Cr 5)PP applied against invoice: Liability ac-Dr PP expense-Cr

5 Tips to Resolve Freight Invoice Discrepancies! Navigating the intricacies of freight invoicing can be challenging, but taking timely measures can help prevent costly discrepancies. Here are five essential tips: 1. Timely recording of freight invoice in accounting system and it must be sent to reviewer the same day. 2. Review all charges carefully: Scrutinize each line item on your invoices to catch any unexpected fees. 3. Dispute with carrier or forwarder: In case of discrepancies, dispute must be raised to the carrier or forwarder within 48 hours of invoice receipt. Timely raising disputes will enhance resolution 50% faster. 4. Conversation with sales rep: In case of dispute rejected or no revert from carrier or forwarder within 2 days of dispute filling, we need to fix a meeting with the sales representative for resolution of dispute. 5. Utilize professional dispute management services: Partnering with experts can significantly reduce the risk of getting disputes unresolved. At Virtue CPAs, we’re here to help you avoid these common pitfalls and ensure your freight disputes are sorted out within a time frame. Our team is committed to your success, providing the support you need to thrive in today’s competitive landscape. Connect with us for expert assistance and let us help you streamline your freight processes Call Now: 6789529009 Or Visit: https://lnkd.in/gh_sinUD  #LogisticsSolutions #FreightManagement #InvoiceAccuracy #LogisticsConsulting #FreightCostSavings #Virtuecpas Burak Cendek William Cassidy Mark Chadwick Trenton Chen Malin Collin

Invoice auditing doesn't change your shipping processes - it ensures you pay the CORRECT amount. Anywhere from 5-8% of freight spend could be saved through disputing overcharges the proper way At Rocket Shipping, our TMS has a built-in freight bill audit capability to cross-check invoices against quoted rates, flagging any variances. (AKA a quick-and-easy way to identify the repeat 'Overchargers' and factor that into your carrier selection) For valid overcharges like incorrect weight, class, accessorial fees, etc., we guide customers through the dispute process with carriers and provide the documentation they need. Failing to audit freight invoices will leave money on the table - take back that freight spend and catch the problem right away instead. #FreightBillAuditing #FreightSpend #LTLShipping

Key Features of Debit Note : Purpose 1. Formally communicates a reduction in the amount owed to a supplier 2. Documents reasons for decreasing the original invoice amount 3. Serves as a supporting document for accounting and financial records 👉 Common Scenarios for Issuing a Debit Note: 1. Returning damaged or defective goods 2. Receiving goods in lesser quantity than invoiced 3. Discovering pricing errors in the original invoice 4. Claiming compensation for poor quality products 5. Adjusting for overcharging 👉 Contents of a Typical Debit Note: 1. Seller's name and contact information 2. Buyer's name and contact information Original invoice number 3. Date of the debit note 4. Detailed description of the reason for the debit 5. Specific amount being debited 6. Calculation of the adjusted total 7. Reference numbers and tax information 👉 Accounting Treatment: 1. Reduces accounts payable for the buyer Reduces accounts receivable for the seller Impacts the overall financial statements of both parties 👉 Legal and Financial Significance: 1. Serves as a legal document for financial adjustments 2. Provides transparency in business transactions 3. Helps maintain accurate financial records 4. Can be used for tax and auditing purposes #accauntant #accounting #debitnote #creditnote #Finance #Returns #AP

Both #BillDiscounting and #InvoiceDiscounting may seem interchangable terms but there is a subtle difference. I explain in this short video.