What's the legal document between the shipper and the carrier? Any guesses? It's known as a 'Bill of Lading' or a 'Shipping Invoice.' The focus of this guide is Shipping Invoices. We will learn everything there is to know about shipping invoices and related concepts.
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What's a Bill of Lading?
A bill of lading, also known as a shipping invoice, is a legal accounting document that details the contents of a freight shipment. This invoice is issued by the carrier to the shipper and contains information about the items transported. It includes the following information: the type of goods, product names, volume, purchase price, and destination of the items. The bill of lading holds a vital position as a legal contract between the freight supplier and the shipper.
Understanding Bill of Lading
A shipping invoice or bill of lading (BoL or BL) is commonly used in international trade. In this context, 'lading' refers to loading cargo onto a ship. Every business must have an internal control system in place to avoid fraud. Internal control also includes role separation. Simply put, it prevents one person from wielding too much power within an organization.
Purpose of Bill of Lading
A bill of lading has three primary purposes and goals. Let's double-check;
1.Serves as a title document for the goods listed on the bill of lading.
2.Acts as a receipt for shipped goods
3.Contains the agreed-upon terms and conditions for the shipment of the goods.
Significance of Shipping Invoice
A shipping Invoice is a legally binding contract that provides both parties with safety and security. A bill of lading is essentially an irrefutable confirmation of transportation. A bill of lading also allows for task separation, an essential component of a company's internal control framework for preventing theft.
Elements to Include in Shipping Invoice
Below we have provided a list of elements included in the shipping invoice. Let's check:
● Name and Contact Details of Shipper
● Name and Contact Details of Receiver
● Name and Contact Details of Carrier
● Reference Number or Purchase Order Number'
● Goods Details and Description
● Freight Designation and Details
● Pick Up Date
● Type of Packaging
● Delivery and Notes Instructions
This marks the end of this comprehensive guide. Let's go over some key points that will be useful for future reference:
● A bill of lading, also known as a shipping invoice, is a legal accounting document that details the contents of a freight shipment.
● A shipping invoice or bill of lading (BoL or BL) is commonly used in international trade.
● The shipping invoice includes your correct mailing address, contact information, and email address.
● You must include payment methods such as checks, cash, card, or net banking in your invoice.
● Shipping invoices are more detailed than other commercial bills.
● Internal control includes the separation of roles. Simply put, it prevents one person from wielding too much power within an organization.