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A bill and hold clause is a contractual agreement where a seller invoices a buyer for goods but retains physical possession of the goods until a later date. Typically used when the buyer is not ready to take delivery, this arrangement allows the seller to recognize revenue despite the delay in transfer of goods.
What is an example of a bill and hold arrangement?
Bill-and-Hold Arrangement Example Company A agreed to supply 100 widgets to Retailer A. The widgets are to be branded specifically for the retailer. The contract outlines where the widgets will be delivered to (Retailer As premises).
What is the bill and hold clause?
Bill and Hold is a sales arrangement in which a seller bills a customer for goods but retains physical possession of the goods until a later date, typically at the request of the customer. This arrangement allows the seller to recognize revenue before the goods are delivered, under specific conditions.
What is a bill and hold agreement?
Bill-and-hold arrangements arise when a customer is billed for goods that are ready for delivery, but the reporting entity does not ship the goods to the customer until a later date.
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