How to Record LC Amendment Charge Recovery
Recording the recovery of Letter of Credit (LC) amendment fees from the applicant or counterparty.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable / Cash | Debit | 250.00 | - |
| LC Amendment Expense Offset | Credit | - | 250.00 |
💡 Accountant's Note
If a bank charges an amendment fee that is contractually the responsibility of the counterparty, the company records the recovery as a reduction of the original expense or a receivable.
Practitioner & Systems Framework
💻 ERP Architecture
Record via a miscellaneous invoice or a credit note in the AR module.
⚠️ Audit Flags
Failure to link the recovery to the specific bank debit for the amendment fee.
📄 Required Documentation
Amendment advice, original contract terms, and bank debit note.
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