Home > Operations > Allocating Expenses to a Voyage
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The voyage, from load port to load port, is the unit that is central to accounting. Voyage revenues and expenses are allocated to the voyage, which is straightforward for freight, port expenses, demurrage, and miscellaneous invoices. However, bunker costs and Time Charter hire expenses can be difficult to tie to a voyage. You are paying upfront, but the expense might cover several voyages, or there might be multiple payments for one voyage. These expenses go to inventory accounts and need to be allocated to a voyage. Voyage Period Journals enable you to allocate your prepaid expenses, such as hire and bunkers, to the proper expense accounts.
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When the Voyage Period Journal Entry is posted, it appears in the Posted column in the Voyage Manager under Bunker Expenses. If any changes are made to the voyage that impact the bunker expenses, and they have already been posted, the difference is calculated, which can be posted.
Bunker Breakdown Example
Inv/Opr Qty | Basic Price | Prorated Port Price | Total per MT Price | |
|---|---|---|---|---|
IFO | 1,000 | $10.00 | $9.71 | $19.71 |
MDO | 20 | $10.00 | $9.71 | $19.71 |
LSG | 10 | $10.00 | $9.71 | $19.71 |
Total MT | 1,030 | |||
Port Charges | $10,000.00 | |||
Port Cost per MT | $9.71 = $10,000.00 / 1,030 |
Time Charter Hire
If you Time Charter In a vessel for a year, you might use it for several voyages during that time. Because you are paying a daily rate for the vessel, hire is allocated on a time basis. However, if you are paying in 15-day increments, those might not line up with voyages.
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