Oil & Gas
Crude Oil Transportation — Tanker Hire
Paying a tanker hire charge to transport crude from the loading terminal to the customer's port.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Transportation Expense (LOE) | Expense (+) | 850,000.00 | - |
| Cash / Freight Payable | Asset/Liability (-) | - | 850,000.00 |
💡 Accountant's Note
Transportation costs are expensed as incurred. Whether classified as LOE or a reduction to revenue (netback pricing) depends on the commercial terms — CIF sales include transport in the revenue; FOB sales show it as a separate expense.
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