## Bill and Hold Arrangements
### What is Bill and Hold?
A situation where the buyer requests the seller to hold delivery (e.g., due to lack of storage space, transportation delays) but billing is done and the buyer takes title to the goods.
> Normally, revenue is recognised on delivery. In bill and hold, revenue can be recognised on the date of billing even though physical delivery has not occurred — but only if specific conditions are met.
### Conditions to Recognise Revenue in Bill and Hold:
1. Buyer's request — delivery is delayed at the buyer's specific request
2. Goods are identified — goods cannot be sold to another customer
3. Ready for delivery — goods are complete and ready to be delivered
4. Usual payment terms apply
> If any condition is not met, revenue must wait until actual delivery.
### Illustration:
```
Customer (e.g., a hospital) orders a CT scanner from a manufacturer.
Hospital under renovation — requests seller to hold for 2 months.
Goods are earmarked for this buyer, ready to ship.
→ Revenue can be recognised on date of billing.
```