How to Charge and Record Truck Detention Revenue When a Customer Causes Loading Delays
Recognizing revenue when a customer keeps a driver waiting at the loading dock beyond the contractual free time.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Asset (+) | 75.00 | - |
| Detention Revenue | Revenue (+) | - | 75.00 |
💡 Accountant's Note
Unlike Port Demurrage (which is an expense), this is revenue the logistics company earns when the client causes a delay.
Practitioner & Systems Framework
💻 ERP Architecture
Detention charges compensate the carrier for driver and vehicle time lost while waiting at a customer's loading dock beyond the free-time allowance (typically 2 hours). The charge is usually a fixed hourly rate after the free period. Record in the ERP as Detention Revenue, separate from Freight Service Revenue, for performance reporting. The free-time allowance and detention rate must be specified in the transport contract — charging detention without a contractual basis is unenforceable. Use driver wait-time logs (timestamped arrival at gate and departure from dock) as supporting documentation.
⚠️ Audit Flags
Auditors verify that detention revenue is supported by timestamped driver logs and that the rate applied matches the contract. Detention claims without documentary evidence of wait time are likely to be disputed by clients and should not be recognized until agreed. Collection of detention revenue is often contested by clients — assess the ECL on detained receivables separately from standard freight receivables.
📄 Required Documentation
Transport contract specifying free-time allowance and detention rate, driver wait-time log (timestamped gate arrival and departure), customer gate entry/exit record, detention charge calculation, detention invoice to client, client acceptance or dispute, and Detention Revenue ledger.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.