Bill of lading definition
/What is a Bill of Lading?
A bill of lading documents the type and quantity of goods being sent from a seller to a buyer. The document also details the method of shipment and how it will be routed, and can be used as a receipt for the cargo. A bill of lading can also be used as proof of ownership of the goods being moved.
A bill of lading is created by a carrier and attached to the goods being delivered. The accounting department of the buyer uses the bill of lading as a proof of receipt to verify that supplier invoices should be paid.
What Information is in a Bill of Lading?
The format and content of a bill of lading is standardized, so you will find roughly the following information in each bill:
The name of the shipper
The name of the consignee
A description of the goods being shipped
The weight and package count of the goods
The loading location
The discharge location
The terms of payment
Example of a Bill of Lading
James O’Reilly Carpenters ships one of its hallway tables to Homeway Furniture. The freight carrier creates a bill of lading for the shipment, noting the contents of the delivery. Upon delivery, the receiving manager at Homeway Furniture compares the delivered item to the bill of lading to verify receipt, and then forwards the document to the accounting department. The payables clerk compares the seller’s invoice to the bill of lading to verify receipt before authorizing payment of the invoice.