Bill and hold transaction

What is the consequence of a bill and hold transaction? Does revenue increase, COGS increase, inventory decrease and account receivable increase?

I too am curious about this. Revenue would be booked but not sure about COGS…

Yes, this is my understanding. Additionally, when payed, acc rec decreases again and cash increases. But these are effects that should under high reporting quality not be recognised in the financial statements in the first place.

But if they are my understanding is they should have the effects above which are the regular effects of selling from inventory. I cannot imagine inventory and COGS not be reduced, since I would guess you can’t have it both ways in that you are selling and keeping it in your inventory.

Depends on the manner in which it is recorded. I believe that if the money has been received but you’ve not sent the goods, it should be recognised as an unearned revenue (liability) and not as revenue and not all the risks and benefits of the good has been sent to the buyer. Also, as you’re still holding the goods, inventory should not be decreased (and consequentially, COGS should not increase).

Recognising it as revenue reduces the quality/reliability(?) of the financial reporting.

My 2 cents.