Interconnect / Termination Income
Earning termination revenue when another operator's calls are terminated on the network.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interconnect Receivable | Asset (+) | 85,000.00 | - |
| Interconnect / Termination Revenue | Revenue (+) | - | 85,000.00 |
💡 Accountant's Note
When a caller on Network A calls a subscriber on Network B, Network A pays Network B a termination rate. This wholesale revenue is settled monthly between operators based on CDR (Call Detail Record) data.
Practitioner & Systems Framework
💻 ERP Architecture
Interconnect traffic is measured by the network mediation system, which aggregates CDRs by originating operator and traffic type (fixed, mobile, international). The interconnect billing system generates monthly statements (SDRs — Settlement Detail Records) for each interconnect partner. Revenue is accrued monthly based on internal CDR data and confirmed by exchange with counterparties. The interconnect billing system feeds to the ERP for AR posting. In Jordan, interconnect rates (MTR — Mobile Termination Rates) are set by the TRC.
⚠️ Audit Flags
Auditors test interconnect revenue by reconciling the internal CDR-based accrual to the signed monthly statements exchanged with each operator. Disputed volumes require specific assessment. Confirm that the termination rate applied matches the signed interconnect agreement or the TRC-regulated MTR. Test for any netting of interconnect income and expense in the P&L — IFRS requires gross presentation. Review the aged interconnect receivable for disputed or long-outstanding items.
📄 Required Documentation
CDR aggregation report by originating operator, signed monthly settlement statements (SDRs), interconnect agreement with applicable rates, TRC MTR rate schedule, aged interconnect receivable report, and dispute log with counterparties.
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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.