Field Notes
Revenue cut-off for export traders
Bill of lading dates, free-on-board terms, and December shipments that still slip into the wrong fiscal year.
Export traders around Wakayama’s ports often recognise revenue when goods leave the warehouse. Auditing standards ask a narrower question: when did control transfer under the contract’s shipping terms?
Read the Incoterms on the invoice
Free-on-board destination terms push recognition later than free-on-board shipping point. We compare bill of lading dates to invoice dates and to the perpetual inventory relief date. Mismatches cluster in the last ten days of the fiscal year.
Watch bonded warehouse movements
Goods sitting in bonded storage may already have left your books while still under your control — or the reverse. A short schedule of bonded lots at year-end prevents circular debates during clearance meetings.
Document management’s policy once
If your policy is to recognise on bill of lading date for FOB shipping point sales, write that policy into the accounting manual and apply it consistently. Ad hoc “we usually wait for the customer’s receipt” explanations slow every subsequent audit.
Bring a sample of December export files to your next scoping call; we can flag cut-off risk before fieldwork begins.