Revenue expenditure incurred in the transporting of raw materials or products for resale into a business. Sometimes delivery charges are included in the total purchase price, at other times a separate charge is made. This separate charge is termed carriage inwards.
Any such carriage charges should be debited to the carriage inwards account in the general ledger . At the end of the accounting period the carriage inward account will be written off to the prime cost section of the manufacturing account (if the carriage charge was incurred in transporting raw materials to the factory) or to cost of sales (if the carriage charge was incurred in transporting goods for resale in a retail outlet).