How to record revolving credit facility fees
Accounting for the commitment fees paid to a bank to keep a revolving credit line available for use.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Financing Fees | Debit | 1,500.00 | - |
| Cash at Bank | Credit | - | 1,500.00 |
💡 Accountant's Note
Commitment fees are charged on the undrawn portion of a revolver and are recorded as financing expenses.
Practitioner & Systems Framework
💻 ERP Architecture
Capture in the debt management or treasury module linked to the credit facility ID.
⚠️ Audit Flags
Fees paid on fully drawn facilities where commitment fees should not apply.
📄 Required Documentation
Credit facility agreement and bank fee debit advice.
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Expert Analysis by Qusai Ahmad
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