Carriage outwards
Carriage outwards is the cost of delivering goods to customers. It is normally a distribution or selling expense of the period rather than part of the cost of inventory held by the seller. In FA accounts it is therefore kept separate from carriage inwards, which may form part of inventory cost. Follow the facts if delivery itself is a separate promised service.
Worked example
A retailer pays a courier $150 to deliver completed sales to customers: record distribution expense and the associated cash payment or payable.
Common mistake
Charging the customer a delivery fee does not turn the seller’s courier payment into carriage inwards.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |