How to Record Demurrage Revenue
Recognition of revenue earned when a charterer exceeds the agreed time allowed for loading or unloading.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Demurrage | Debit | 4,200.00 | - |
| Demurrage Revenue | Credit | - | 4,200.00 |
💡 Accountant's Note
Revenue recognized once laytime calculations are finalized and the charterer is billed for the delay.
Practitioner & Systems Framework
💻 ERP Architecture
Recognize via the voyage accounting module based on the final Statement of Facts (SOF).
⚠️ Audit Flags
Significant delay between voyage completion and demurrage billing; high volume of disputed claims.
📄 Required Documentation
Statement of Facts, Laytime Calculation sheet, and Charter Party agreement.
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