How to Record Cargo Claim Settlements
Accounting for payments made to shippers or receivers for cargo damage or loss during transit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cargo Claims Expense | Expense | 15,000.00 | - |
| Bank Account | Asset | - | 15,000.00 |
💡 Accountant's Note
This entry records the settlement of a claim where the carrier accepts liability for damaged goods, reducing cash and increasing operating expenses.
Practitioner & Systems Framework
💻 ERP Architecture
Link to the specific voyage code and Bill of Lading number in the claims module.
⚠️ Audit Flags
Large or frequent claims relative to freight volume; lack of surveyor reports.
📄 Required Documentation
Signed release and discharge, surveyor report, original Bill of Lading, and commercial invoice.
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