How to Record Off-Hire Revenue Deductions
Accounting for the reduction in time charter hire revenue when a vessel is unavailable for service due to technical issues.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Charter Revenue | Revenue | 12,000.00 | - |
| Accounts Receivable | Asset | - | 12,000.00 |
💡 Accountant's Note
Off-hire periods result in a direct reduction of the hire earned, usually calculated based on the daily hire rate for the duration of the downtime.
Practitioner & Systems Framework
💻 ERP Architecture
Use a contra-revenue account to track off-hire impact separately from gross hire.
⚠️ Audit Flags
Large off-hire adjustments not matching deck logs or technical reports.
📄 Required Documentation
Off-hire statement and Master's log confirming the start and end of the event.
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