In practice, how enterprises should present freight charges collected from customers (i.e., "pass-through freight" or "freight reimbursement") has always been a common question in accounting treatment. The core issue is whether this amount should be included in operating revenue (i.e., "top-line revenue") or treated as a deduction from cost of sales (i.e., "net presentation").

From the perspective of accounting standards, revenue recognition should be based on the judgment of whether the enterprise acts as the "principal" in transferring goods or services to customers. If the enterprise assumes the primary responsibility in arranging transportation, and the freight is part of the consideration that customers must pay, it should generally be included in operating revenue; conversely, if the enterprise merely acts as an agent collecting and paying freight on behalf of customers, it may be accounted for on a net basis, i.e., offset against related costs.

However, in practice, different enterprises handle this differently. Some enterprises tend to recognize the full amount of freight as revenue to reflect a more complete transaction scale; others choose to directly offset freight against cost of sales to simplify accounting and avoid inflating revenue. Both methods have their own rationality, but judgment should be made based on specific business models, contract terms, and industry practices.

We welcome professionals to share your views: In your company or cases you have encountered, is customer freight presented as top-line revenue or as a deduction from cost of sales? Please share your experience and leave a comment below for discussion.