Asset Management & Hedge Funds

How to record fund storage fees for bullion

Recording the monthly accrual for physical storage and insurance costs for precious metals held within a commodity-focused fund or ETF.

Account NameTypeDebit ($)Credit ($)
Bullion Storage ExpenseExpense1,200.00-
Accrued Storage LiabilitiesLiability-1,200.00

💡 Accountant's Note

Storage fees for physical assets are typically calculated based on the weight or market value of the bullion held in a third-party vault.

Practitioner & Systems Framework

💻 ERP Architecture

Automate based on the month-end market value of the physical inventory within the commodity sub-ledger.

⚠️ Audit Flags

Variance between vault inventory reports and storage invoices; excessive insurance premiums.

📄 Required Documentation

Vaulting agreement, monthly storage invoice, and insurance policy schedules.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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