Risk of verifying revenue from drop-shipment transactions
First written in FY2021. . Latest entry: FY2026.
0 other companies' latest entry also says "Other".
- FY2026Drop-shipment transaction amount updatedAnnual report
「Of wholesale revenue of ¥9,547.902 million, drop-shipment transactions accounted for ¥4,834.413 million. In these transactions, construction materials are shipped directly from suppliers to customers without passing through the company. Since the company does not directly handle shipment or delivery of the products, verifying the occurrence of revenue is relatively difficult. The company is working to reduce this risk by matching transactions against external supporting documents, such as delivery notes issued by suppliers, and confirming accounts receivable balances with customers to assess the validity of revenue recognition.」
Drop-shipment transactions totaled ¥4,834 million out of wholesale revenue of ¥9,547 million. Matching against external supporting documents and confirming accounts receivable balances continue as mitigation measures. - FY2025Drop-shipment transaction amount updatedAnnual report
「Of wholesale revenue of ¥10,210.544 million, drop-shipment transactions accounted for ¥5,103.289 million. In these transactions, construction materials are shipped directly from suppliers to customers without passing through the company. Since the company does not directly handle shipment or delivery of the products, verifying the occurrence of revenue is relatively difficult. The company is working to reduce this risk by matching transactions against external supporting documents, such as delivery notes issued by suppliers, and confirming accounts receivable balances with customers to assess the validity of revenue recognition.」
Drop-shipment transactions totaled ¥5,103 million out of wholesale revenue of ¥10,210 million. Matching against external supporting documents and confirming accounts receivable balances continue as mitigation measures. - FY2024Drop-shipment transaction amount updatedAnnual report
「Of wholesale revenue of ¥10,069.445 million, drop-shipment transactions accounted for ¥5,019.080 million.」
Drop-shipment transactions totaled ¥501.9 million. Mitigation measures involving matching against external supporting documents, such as delivery notes, and confirming accounts receivable balances continue. - FY2023Drop-shipment transaction amount and verification procedures updatedAnnual report
「Of wholesale revenue of ¥10,865.276 million, drop-shipment transactions accounted for ¥5,832.871 million. In these transactions, construction materials are shipped directly from suppliers to customers without passing through the company. Since the company does not directly handle shipment or delivery of the products, verifying the occurrence of revenue is relatively difficult. The company is working to reduce this risk by matching transactions against external supporting documents, such as delivery notes issued by suppliers, and confirming accounts receivable balances with customers to assess the validity of revenue recognition.」
Drop-shipment transactions totaled ¥5,832 million out of wholesale revenue of ¥10,865 million. Matching against external supporting documents and confirming accounts receivable balances continue as mitigation measures. - FY2022Drop-shipment transaction amount and verification procedures updatedAnnual report
「Of wholesale revenue of ¥10,959.617 million, drop-shipment transactions accounted for ¥6,015.375 million. In these transactions, construction materials are shipped directly from suppliers to customers without passing through the company. Since the company does not directly handle shipment or delivery of the products, verifying the occurrence of revenue is relatively difficult. The company is working to reduce this risk by matching transactions against external supporting documents, such as delivery notes issued by suppliers, and confirming accounts receivable balances with customers to assess the validity of revenue recognition.」
Drop-shipment transactions totaled ¥6,015 million out of wholesale revenue of ¥10,959 million. In addition to the existing matching against supporting documents, confirmation of accounts receivable balances is described as a risk mitigation measure. - FY2021First statedAnnual report
「Of wholesale revenue of ¥10,489.429 million, drop-shipment transactions accounted for ¥5,876.120 million. In these transactions, construction materials are shipped directly from suppliers to customers without passing through the company. Since the company does not directly handle shipment or delivery of the products, verifying the occurrence of revenue is relatively difficult. The company is working to reduce this risk by matching transactions against supporting documents evidencing the movement of goods from suppliers.」
Drop-shipment transactions account for approximately 56% of wholesale revenue. The company has newly identified as a risk the difficulty of verifying revenue because it does not directly handle shipment or delivery, and uses matching against supplier supporting documents as a mitigation measure.