What is carriage inwards?

Question

and whats carriage outwards and please differentiate both.

Answer 1

Best Answer - Chosen by Asker

Carriage inwards (aka transportation-in) is the freight you pay when you buy goods. It's part of the cost of merchandise inventory purchased, and will ultimately end up in COGS.

Carriage outwards (aka transportation-out or delivery charges) is the freight you pay when you sell goods. It's part of selling expenses, which is part of operating expenses. It does not affect gross profit.

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Asker's Comment:

thanks a lot.very precise and accurate answer