Safe Custody / Safety Deposit Box Fee
Charging an annual safe custody fee for holding securities or valuables for a customer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Customer Account (Annual Fee Deducted) | Liability (−) | 120.00 | - |
| Safe Custody Fee Income (Deferred) | Liability (+) | - | 120.00 |
💡 Accountant's Note
Annual safe custody fees are deferred and amortized over 12 months — the bank's performance obligation is continuous custody of the assets. The entry mirrors the treatment of annual card fees.
Practitioner & Systems Framework
💻 ERP Architecture
Safe custody management is typically handled in a dedicated custody management system or a sub-module of the core banking system. The fee billing is automated at the anniversary date. Monthly amortization credits fee income at JOD 10/month for a JOD 120 annual fee.
⚠️ Audit Flags
Auditors verify that safe custody agreements are signed and that the physical inventory of custody items is reconciled annually (vault count). Unclaimed custody items after a long period may need to be reported to the CBJ as dormant assets.
📄 Required Documentation
Signed custody agreement, inventory of items held, annual fee billing advice, and physical vault count confirmation.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.