Carriage is the cost of transporting goods from the supplier to the business which has purchased them. Sometimes the supplier pays and sometimes the buyer pays.
If the supplier pays, the cost to the supplier is called “carriage outwards” and if the buyer pays, the cost to the buyer is called “carriage inwards”.
Carriage inwards is usually added to the cost of purchases and is therefore included in the trading account by default.
Carriage outwards is a selling and distribution expense in the profit and loss account.