How to Record LC SWIFT Message Charges
Accounting for the communication costs incurred by banks for transmitting LC data via the SWIFT network.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Bank Service Charges | Expense | 150.00 | - |
| Cash/Bank Account | Asset | - | 150.00 |
💡 Accountant's Note
Banks charge a fee for the electronic transmission of Letters of Credit using the SWIFT messaging system. This is recorded as an immediate operating expense.
Practitioner & Systems Framework
💻 ERP Architecture
Usually posted during bank reconciliation or via an automated bank feed module.
⚠️ Audit Flags
Verification of bank debit advice against the LC terms and conditions.
📄 Required Documentation
Bank debit advice and LC transmission confirmation.
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