MANAGEMENT

Detailed explanation-1: -Whenever you pay for shipping out to your customer, this is not included in COGS but is a monthly expense. This expense of shipping to the customer is directly related to the sale of the product, so we include it in the Cost of Sales section and include it in the gross profit calculation.

Detailed explanation-2: -Shipping Charges means the logistics/courier/postal charges incurred for delivering the product(s) from the Seller to the customer.

Detailed explanation-3: -“Shipping” denotes the processing, packaging, and dispatching of small items that can be sent quickly and easily, typically through a local courier service. “Delivery”, on the contrary, refers to the transportation of relatively large items like electronics and furniture from a warehouse to a customer’s address.

Detailed explanation-4: -To record shipping costs, a corporate bookkeeper debits the shipping expense account and credits the vendor payable account or the cash account. The last item comes into play if the business pays for merchandise conveyance immediately.