more-arw search

Q&A Forum

Revenue recognition - drop ship products

Can revenue be recognized upon sale for resellers of product when delivery of product is directly from the manufacturer to the end user and the reseller lists FOB origin on its invoice? The customers cannot return goods. If they are damaged the reseller will have the manufacturer replace the merchandise.

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

The revenue should be recognized (FOB Origin) the day you/your Manufacturer ships, not the day you process the order.

FOB Destination would be the day the customer receives the merchandise.

1236 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.