How to Record Liner Agency Commissions
Recording the commission expense payable to shipping agents for securing cargo and managing local operations.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Agency Commission Expense | Debit | 3,500.00 | - |
| Accrued Agency Fees | Credit | - | 3,500.00 |
💡 Accountant's Note
Liner agents typically earn a percentage of the freight revenue; this expense is accrued upon the departure of the vessel.
Practitioner & Systems Framework
💻 ERP Architecture
Automate via the agency module based on predefined commission percentages in the agent contract.
⚠️ Audit Flags
Calculation errors where commission is applied to surcharges instead of base freight only.
📄 Required Documentation
Agency Agreement and the Manifest Recap showing total freight earned.
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