Logistics

LCL Consolidation (Margin Accounting)

Recording the revenue from 'Less than Container Load' clients versus the 'Full Container Load' cost paid to the ship.

Account NameTypeDebit ($)Credit ($)
Accounts Receivable (Multiple Clients)Asset (+)5,000.00-
Freight Cost (FCL Buy Rate)Expense (+)3,500.00-
Freight Revenue (LCL Sell Rate)Revenue (+)-5,000.00
Accounts Payable (Shipping Line)Liability (+)-3,500.00

💡 Accountant's Note

This is the core profit model for Freight Forwarders: buying a whole container space and selling it in 'slices' to small shippers.

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