USA Equipment (fixed assets) shipped in pieces

[Vickie]

When a piece of equipment is shipped in separate packages, when is it considered received at the end users place of business? Is it when the last piece is delivered?
Should shipping terms be considered (Destination or Shipment)?
What would the entries be in Dec17 and Jan18?
The invoice is dated in Dec17 and the final piece of equipment was delivered in mid Jan18. Nothing had been received in Dec17.

 

[Steve-LevelUp]

Typically, it depends on the nature of the agreement. If it was shipped in Dec, but didn't arrive in January, and you take ownership when it leaves the manufacturers facility, then the Dec 17 date was correct. However, the agreement stipulates the transfer of ownership upon receipt of the goods, then the Jan 18 date would be correct. I would just book the invoice as of Jan 18.

 

[Vickie]

Typically, it depends on the nature of the agreement. If it was shipped in Dec, but didn't arrive in January, and you take ownership when it leaves the manufacturers facility, then the Dec 17 date was correct. However, the agreement stipulates the transfer of ownership upon receipt of the goods, then the Jan 18 date would be correct. I would just book the invoice as of Jan 18.

The vendor (to us) is an FOB shipping so it was ours back in Dec17. We ended up doing an AJE. Thanks for responding!!!!