Dictionary / C&F
What does C&F mean in accounting?
Quick definition
GeneralCost and freight: a term indicating that the quoted price of an object of sale includes charges for handling and freight up to delivery to a foreign port, the purchaser assuming costs of insurance and unloading, transportation, and other costs at or from the foreign port. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
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Examples
Tea chests quoted C&F Seattle
You run a tea shop in Seattle. On April 8, a tea exporter quotes $5,240 C&F Seattle for 20 chests of oolong: the tea plus handling and ocean freight to Seattle, but not insurance or destination costs. Enter a bill dated April 8 to that exporter for $5,240, coded to inventory (or split goods and freight-in if you track them apart). Do not wait for a separate ocean-line invoice for that voyage; buy your own cargo policy and post that premium, plus terminal, broker, and trucking bills, when they arrive.
A Hamburg sale that leaves insurance out
Your leather-goods studio quotes a Berlin boutique $6,720 C&F Hamburg on June 17 for a run of tote bags. That price already includes the bags plus handling and ocean freight to Hamburg. Record the $6,720 as a sale on the invoice (and accounts receivable if they pay later). Pay the ocean line as its own bill, coded to freight-out or COGS; do not add a second freight charge on the customer invoice. Marine insurance, unloading, and German trucking stay off your books; the buyer covers those from the port.
Why it matters
C&F is a quote term, not a ledger account: the seller's price already includes handling and freight to a named foreign port, and you still buy cargo insurance and pay unloading, inland trucking, and other destination costs. You will not see this most months unless you import or export; it shows up on a purchase order, vendor invoice, or sales quote that lists C&F plus a port. Treat it as CIF and you will skip a cargo policy that was never in the price, so inventory cost is short; treat it as domestic FOB and you will wait for an ocean-freight bill that will not arrive, or leave freight out of landed cost.
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What is C&F in bookkeeping?
Cost and freight: a term indicating that the quoted price of an object of sale includes charges for handling and freight up to delivery to a foreign port, the purchaser assuming costs of insurance and unloading, transportation, and other costs at or from the foreign port.
When should I use C&F?
Use C&F when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with C&F?
C&F is used for c&f entries, while Capital covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.