Bill And Hold Agreement Template

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A bill and hold arrangement is a contract under which a company bills a customer for a product but retains physical possession of the product until it is transferred to the customer at a point in time in the future. This may allow companies to recognize revenue earlier in some bill and hold transactions.

Revenue can only be recognized under this arrangement when a number of strict conditions have been met.

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Bill and hold agreements represent a sales arrangement in which the buyer pays for the item or items a seller is offering but the seller does not ship or deliver them right away but at a later date. A bill and hold transaction is one in which the seller does not ship goods to the buyer but still records the related revenue. Otherwise there is a risk of fraudulently recognizing revenue.

A form of sales arrangement in which a seller of a good bills a customer for products but does not ship the product until a later date. The new standard does not require bill and hold arrangements to be at the customers request nor does it require the vendor to specify a fixed delivery schedule.