How to Account for FX Markup Revenue
Capturing the spread earned by the bank on foreign exchange transactions executed for private clients.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Client Settlement Account | Asset | 250.00 | - |
| FX Trading Spread Income | Revenue | - | 250.00 |
💡 Accountant's Note
The bank retains a portion of the currency exchange value as a service markup, which is recognized as non-interest income.
Practitioner & Systems Framework
💻 ERP Architecture
Treasury management system integration with core banking.
⚠️ Audit Flags
Unexpected spikes in FX revenue without corresponding trade volume increases.
📄 Required Documentation
Trade Confirmation, FX Rate Source Log, and Markup Policy.
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Expert Analysis by Qusai Ahmad
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