How to Record Charter-out Commission Expense
Recording the commission payable to brokers for securing a charter contract for the vessel owner.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Brokerage Commission Expense | Expense | 2,250.00 | - |
| Commissions Payable | Liability | - | 2,250.00 |
💡 Accountant's Note
Brokerage commissions (usually 1.25% to 5% of gross freight/hire) are recorded as an expense against the revenue earned from the charter.
Practitioner & Systems Framework
💻 ERP Architecture
Calculate automatically in the chartering module based on the gross hire invoiced.
⚠️ Audit Flags
Discrepancy between charter party commission terms and actual payments made.
📄 Required Documentation
Signed Charter Party (CP) and broker's debit note.
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