Meaning of Bill and Hold
What is the meaning of Bill and Hold in Accounting? Briefly describe it.
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Meaning of Bill and Hold in Accounting: As per accrual rule of revenue recognition, we add up new revenue in our total revenue whenever we send service or goods and are given but there are plenty of its exceptions. One of significant exception is bill and hold. When customer requires not his bought products at a time due to delay of its management, he demands to delay the delivery of such products. At that time company records, these sold products in his sales account. This means, such transaction will be recognize as revenue of company. Therefore, this transaction will become bill and hold in accounting. For safer side, company gets cash money from this kind of transaction that treated as normal cash sales transaction.
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