Customers sometimes request that goods that are ready for delivery be “shipped in place” due to their inability to accept delivery at that time. In such a situation, the customer generally pays for the goods upon shipment in place and the seller treats the goods as delivered. Is revenue recognition appropriate in such cases? Generally revenue recognition is not appropriate unless the customer has taken title to the goods and assumed the risks and rewards of ownership In other words, shipment in place will be sufficient delivery for revenue recognition purposes if it was done at the customer’s request and the parties’ rights and obligations after shipment in place are identical or similar to what the would be had actual delivery been made.
In fact, ”ship in place” is a form of constructive delivery. It is usually done to allow a contractor to get paid even though it has not actually shipped the items in question. Nevertheless, it has figured in several board decisions. Today, more and more shipping companies like speedpak tracking are offering such a service. Because of the competition, prices are meager. You can quickly ship to yourself everything you want for a minimal cost.