Logistics Knowledge Center
Explore our verified library of Logistics transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
How to Record Port Demurrage and Container Detention Fees Incurred at Aqaba or Jebel Ali
Expensing penalty charges paid to a shipping line for keeping a container beyond the free-day allowance at port.
How to Record Monthly Pallet Rental Expense for Warehouse Storage Operations
Expensing the monthly cost of renting wooden or plastic pallets used in warehouse storage and distribution.
How to Record the Top-Up of Prepaid Fleet Fuel Cards as a Prepaid Asset
Recording the cash transfer to prepaid fuel cards for a delivery truck fleet as a prepaid asset, not an immediate expense.
How to Recognize Freight Service Revenue When Goods Are Delivered or Contract Terms Are Met
Recording freight revenue under IFRS 15 at the point control of the transportation service passes to the customer.
How to Record Monthly Warehouse Storage Revenue Billed to 3PL Clients
Recognizing recurring warehouse storage fee revenue at month-end based on pallet count or square footage occupied.
How to Record Actual Fuel Consumption by Moving Costs from Prepaid Fuel to Expense
Recognizing fuel expense when drivers draw from prepaid fuel cards, reducing the prepaid asset balance.
How to Record the Cost of Outsourced Freight to a Sub-Contracted Carrier
Expensing the payment to a third-party carrier hired to fulfill a customer shipment under an asset-light logistics model.
How to Record Customs Duties Paid on Behalf of a Client as an Agency Pass-Through
Recording customs duty payments as a balance sheet receivable rather than an expense when the customs agent acts purely as an intermediary.
How to Record Marine Goods-in-Transit Insurance Premium as a Direct Shipment Cost
Expensing the cargo insurance premium for an international shipment as a direct cost of the freight transaction.
How to Record Terminal Handling Charges Paid to Port Authorities for Container Movements
Expensing the mandatory port terminal fees for loading or unloading containers at Aqaba or Jebel Ali.
How to Record a Bulk Truck Tyre Replacement as Fleet Inventory or a Component Asset
Capitalizing high-value tyre replacements that will last more than one year as fleet spare parts or a component of the vehicle asset.
How to Record Cash on Delivery Collections Held on Behalf of E-Commerce Merchants
Recording cash received from end customers at doorstep delivery as a liability owed to the merchant, not as revenue.
How to Charge and Record Truck Detention Revenue When a Customer Causes Loading Delays
Recognizing revenue when a customer keeps a driver waiting at the loading dock beyond the contractual free time.
How to Record a Warehouse Shrinkage Liability When a 3PL Loses or Damages Client Inventory
Recognizing the 3PL's liability to a client for missing or damaged goods discovered during a warehouse inventory count.
How to Capitalize a Major Engine Overhaul That Extends a Truck's Useful Life
Adding the cost of a major engine rebuild to the vehicle asset under IAS 16 component accounting when it extends the truck's service life.
How to Record Highway Toll Charges and Weighbridge Fees as Direct Fleet Operating Costs
Expensing the daily road usage costs and statutory weight compliance fees incurred on every long-haul journey.
How to Record Warehouse Picking and Packing Labor as a Direct Cost of Fulfillment Services
Classifying warehouse labor costs for order picking, packing, and dispatch as direct operating costs (COGS) for 3PL operators.
How to Record a Refundable Container Deposit Paid to a Shipping Line as an Asset
Recording a refundable deposit paid to a shipping line for releasing a container as a receivable asset, not an expense.
How to Record Empty Truck Repositioning (Deadhead) Costs for Route Optimization Tracking
Expensing the fuel and driver costs of moving an empty truck to a new pickup location as a directly traceable operational loss.
How to Accrue Monthly Electricity Costs for Temperature-Controlled Cold Storage Warehousing
Estimating and accruing the high electricity consumption of refrigerated warehouse operations at month-end.
How to Record a Fleet Insurance Claim Receivable After a Truck Accident
Recognizing an insurance claim receivable when the insurer agrees to reimburse repair or replacement costs following a vehicle accident.
How to Record a Freight Forwarding Commission on a Net Basis When Acting as an Agent
Recognizing only the forwarding fee as revenue when the forwarder arranges transportation as an agent without controlling the freight service.
How to Record Monthly Telematics and GPS Fleet Tracking Subscription Fees
Expensing the monthly SaaS subscription for fleet management, GPS tracking, and driver behavior monitoring software.
How to Record Bill of Lading and Shipping Documentation Fee Revenue
Recognizing administrative fee income for preparing and issuing shipping documents including Bills of Lading.
How to Record and Amortize an Annual Heavy Vehicle Road License and Registration Tax
Paying the annual government road tax and license for commercial trucks as a prepaid asset amortized monthly.
How to Depreciate Warehouse Racking Systems as Long-Life Fixed Assets
Recording monthly straight-line depreciation on steel pallet racking structures installed in the warehouse.
How to Record Monthly Container Lease Payments as a Direct Operating Expense
Expensing the monthly rental for shipping containers leased from a container leasing company.
How to Record Fuel Surcharge Revenue Billed to Clients to Offset Diesel Price Increases
Recognizing the variable fuel surcharge billed to clients as a separate freight revenue component.
How to Record a Freight Claim Subrogation Recovery from a Sub-Contractor's Insurer
Recognizing the recovery of a cargo damage payment from a sub-contractor's insurance company after the logistics provider has already compensated the client.
How to Record LCL Consolidation Revenue and Cost When a Freight Forwarder Buys FCL Space and Sells LCL Slices
Recognizing the full LCL sell rate from multiple clients as revenue and the full FCL buy rate as cost to measure the consolidation margin.
How to Disclose the Contingent Duty Liability for Goods Held in a Bonded Warehouse
Tracking the potential VAT and customs duty obligation for goods stored in a bonded area pending customs clearance.
How to Record Intermodal Drayage Costs for Short-Haul Container Movements Between Port and Rail Yard
Expensing the short-haul trucking cost of moving containers between the port terminal, rail yard, or inland container depot.
How to Record the Bunker Adjustment Factor Surcharge Charged by Ocean Carriers
Expensing the BAF fuel surcharge levied by shipping lines on ocean freight bookings as a variable voyage cost.
How to Record Returns Processing Revenue for Handling E-Commerce Product Returns
Recognizing the fee earned for receiving, inspecting, and processing returned goods back into a merchant's inventory.
How to Reclassify a Client Receivable as Cargo Held Under a Lien When Freight Charges Go Unpaid
Converting an overdue freight receivable to a cargo lien asset when the logistics provider legally holds client goods to secure unpaid charges.
How to Record Container Detention Revenue When Clients Keep Your Owned Containers Beyond Free Days
Recognizing demurrage income when a client retains company-owned containers beyond the agreed free period.
How to Record a Ship Time Charter Payment as a Prepaid Asset Amortized Over the Voyage Period
Recording the advance payment for chartering an entire vessel as a prepaid expense released daily over the charter period.
How to Record Cross-Docking Service Revenue Earned for Direct Transfer Between Inbound and Outbound Trucks
Recognizing the throughput handling fee for cross-dock operations where goods move directly from receiving to dispatch without warehousing.
How to Record Cold Chain Temperature Monitoring Fee Revenue as a Premium Value-Added Service
Charging and recognizing fees for continuous temperature checks on refrigerated shipments in pharmaceutical or food logistics.
How to Record Empty Container Depot Storage Revenue Charged to Shipping Lines
Recognizing storage income from shipping lines that park empty containers in the logistics provider's yard between voyages.
How to Record a General Average Contribution Liability Under Maritime Law
Recognizing a provision for the shared maritime loss when a ship's captain takes emergency action to save the vessel, requiring all cargo owners to contribute.
How to Accrue the Massive Suez or Panama Canal Transit Toll as a Voyage Operating Expense
Recognizing the canal passage fee as a voyage cost payable to the canal authority when a vessel enters the transit queue.
How to Mark to Market a Fuel Price Hedge and Record the Fair Value Gain in OCI Under IFRS 9
Revaluing a diesel or bunker fuel swap used as a cash flow hedge and recording the effective gain in Other Comprehensive Income.
How to Record a DDP Sale Where the Seller or Logistics Provider Absorbs Import Duties
Recognizing full revenue on a DDP (Delivered Duty Paid) sale and separately expensing the import duties absorbed by the seller.
How to Record Stevedoring and Shore Handling Fees for Loading and Unloading Ships
Expensing the specialized port labor costs for cargo loading and unloading operations as a variable direct cost.
How to Record a Maritime Salvage Award Receivable After Rescuing a Vessel in Distress
Recognizing a salvage award as receivable income when a maritime court or arbitrator finalizes the compensation for assisting a vessel in distress.
How to Accrue Carbon Emissions Trading Scheme Compliance Costs for International Shipping
Recognizing the monthly carbon credit obligation for shipping emissions under the EU ETS or equivalent carbon pricing regime.
How to Capitalize Project Logistics Mobilization Costs as Contract Assets Recognized Over Project Life
Recording the upfront cost of mobilizing specialized heavy-lift equipment to a project site as a WIP contract asset.
How to Record Port Agency Disbursement Account Funds Received from a Ship Owner
Handling the ship owner's advance funds as restricted client cash and a corresponding liability until port expenses are paid.
How to Record a Reverse Factoring Arrangement When a Bank Pays a Sub-Contractor on the Company's Behalf
Reclassifying a trade payable to bank debt when a supply chain finance program allows the bank to pay the carrier early.
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