How to Book SPV Formation Fees
Recording fees for the structural setup and legal incorporation of Special Purpose Vehicles for client co-investments.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Client Settlement Account | Asset | 5,000.00 | - |
| Corporate Services Revenue | Revenue | - | 5,000.00 |
💡 Accountant's Note
This entry records the professional service income derived from establishing legal entities designed to hold specific client investments.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure the SPV entity is created in the sub-ledger before booking the formation fee.
⚠️ Audit Flags
Formation fees recorded without accompanying certificate of incorporation.
📄 Required Documentation
SPV formation agreement and articles of incorporation.
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