# Ship-and-debit

A term used when buying electrical supply house.

The claim a distributor bills back to a manufacturer for the spread on a discounted shipment.

This is the receivable nobody counts. It is owed by a manufacturer and not a contractor, it is created by paperwork and not by a delivery, and it is denied more often than a trade receivable is. A house carrying a large ship-and-debit balance is carrying a collection risk that does not appear in a customer aging report at all. Ask for the balance by manufacturer, the average age, and the share of claims rejected in the last two years, and treat anything old as a valuation question and not a timing one.

Part of: Buying an Electrical Supply House (https://searchspheresource.com/guides/buying-an-electrical-supply-house)

Source: https://searchspheresource.com/guides/buying-an-electrical-supply-house/terms/ship-and-debit