How to Record LC Courier Charges
Recording the specific administrative charges levied by banks for the physical dispatch of Letter of Credit documents to the counterparty bank.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Bank Service Charges - Trade | Debit | 50.00 | - |
| Cash at Bank | Credit | - | 50.00 |
💡 Accountant's Note
When a bank sends physical LC documents to a beneficiary bank, they charge a courier fee. This is recorded as a trade-related bank expense.
Practitioner & Systems Framework
💻 ERP Architecture
Record via the Cash Management or Accounts Payable module under bank charges.
⚠️ Audit Flags
Frequency of courier charges not matching LC issuance volume.
📄 Required Documentation
Bank advice or debit note showing the courier fee breakdown.
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