Why this is mistaken
Physical location establishes custody, not necessarily control or ownership. An invoice, carrier scan, receiving report, or cash date can corroborate an event, but none supplies a universal transfer rule. Read the executed agreement, identify the transfer condition, and prove when the condition occurred. Then align inventory with the related payable, revenue, receivable, and cost transfer.
Where to watch
When this mistake may appear
- It was in the warehouse, so the company owned it.
- The invoice date decides the period.
- The carrier had it, so neither party owned it.
Check your work
Your work may contain this mistake if:
- Selects a reporting period from location or one document date without identifying the agreement, transfer condition, and event evidence.