Oil & Gas
Refining Margin — Product Sale vs Crude Cost
Recording the sale of gasoline and diesel and recognizing the refining margin.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Trade Receivable (Refined Products) | Asset (+) | 95,000,000.00 | - |
| Refined Product Revenue | Revenue (+) | - | 95,000,000.00 |
| Cost of Refined Products Sold | Expense (+) | 82,000,000.00 | - |
| Refined Product Inventory | Asset (-) | - | 82,000,000.00 |
💡 Accountant's Note
The refining margin (crack spread) is the difference between product revenue and feedstock cost. It varies with supply/demand for specific products and is the primary performance metric for downstream operations.
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