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IMOS On-Prem - Allocating Period Cost to Voyages
- Adaptavist ScriptRunner for Confluence Cloud
- Melanie Whitelock
- Former user (Deleted)
- Carl Schlehr
View IMOS Documentation in the Help Center.
A TC In vessel may have multiple voyages. Some period costs like TC Hire and Bunker expenses, although incurred during one voyage, may not be totally consumed in that voyage. Such costs are allocated among voyages by using Voyage Period Journals to match actual expenses and posted invoices from a financial perspective.
There are two models to do this:
Model A (Recommended): Invoices Are Considered Prepayments & Suspended in the Balance Sheet
The hire and bunker invoices are posted into the balance sheet, and the posted P&L shows no amounts. After running the Voyage Period Journals, the balance sheet will be credited and the P&L will be debited for the same amounts as the actual P&L (regardless of the balance of the Bunkers paid in advance and Hire paid in advance accounts). All hire and bunkers paid for, but not expenses against the voyage, remain posted in the balance sheet.
Example:
Posted cost during voyage 1:
| Hire invoice: 250,000 | |
|---|---|
| DEBIT: Hire paid in advance 250,000 | CREDIT: Account Payable 250,000 |
| Hire payment bunkers on delivery: 300,000 | |
| DEBIT: Bunkers paid in advance 250,000 | CREDIT: Account Payable 300,000 |
| Bunker lifting invoice: 250,000 | |
| DEBIT: Bunkers paid in advance 250,000 | CREDIT: Account Payable 250,000 |
| Hire invoice 2: 250,000 | |
| DEBIT: Hire paid in advance 250,000 | CREDIT: Account Payable 250,000 |
During the voyage:
- Voyage 1 actual bunker expense: 300,000
- Voyage 1 actual hire: 350,000
At the end of the voyage, the voyage 1 P&L will appear as follows:
P&L | Actual | Posted |
|---|---|---|
Bunker Expenses | 300,000 | - |
Hire Expenses | 350,000 | - |
The balance sheet will appear as follows:
Balance Sheet | ||
|---|---|---|
Bunkers paid in advance | 550,000 | |
Hire paid in advance | 500,000 | |
After running the Voyage Period Journal, the voyage 1 P&L will appear as follows:
P&L | Actual | Posted |
|---|---|---|
Bunker Expenses | 300,000 | 300,000 |
Hire Expenses | 350,000 | 350,000 |
The balance sheet will appear as follows:
Balance Sheet | ||
|---|---|---|
Bunkers paid in advance | 250,000 | |
Hire paid in advance | 150,000 | |
The remaining prepaid amount (asset) on the balance sheet will be brought to the next voyage.
Model B: Invoices Are Considered Expenses & Immediately Posted in the P&L
The hire and bunker invoices are posted into the Voyage P&L, and the posted P&L shows full invoice amounts. After running the Voyage Period Journals, the voyage 1 P&L will be credited for the unconsumed hire and bunkers, and the voyage 2 P&L will be debited for the same amount. All hire and bunkers not consumed (and, through Voyage Period Journals, no longer expensed) in voyage 1 are expected to be consumed in the consecutive voyage(s); thus, the expenses are posted in the consecutive Voyage P&L.
Example:
Posted cost during voyage 1:
| Hire invoice: 250,000 | |
|---|---|
| DEBIT: Hire Expenses 250,000 | CREDIT: Account Payable 250,000 |
| Hire payment bunkers on delivery: 300,000 | |
| DEBIT: Bunkers Expenses 250,000 | CREDIT: Account Payable 300,000 |
| Bunker lifting invoice: 250,000 | |
| DEBIT: Bunkers Expenses 250,000 | CREDIT: Account Payable 250,000 |
| Hire invoice 2: 250,000 | |
| DEBIT: Hire Expenses 250,000 | CREDIT: Account Payable 250,000 |
During the voyage:
- Voyage 1 actual bunker expense: 300,000
- Voyage 1 actual hire: 350,000
At the end of the voyage, the voyage 1 P&L will appear as follows:
P&L | Actual | Posted |
|---|---|---|
Bunker Expenses | 300,000 | 550,000 |
Hire Expenses | 350,000 | 500,000 |
After running the Voyage Period Journal:
P&L | Actual | Posted |
|---|---|---|
Bunker Expenses | 300,000 | 300,000 |
Hire Expenses | 350,000 | 350,000 |
After debiting the posted expenses, the remaining 250,000 (550,000 – 300,000) bunker expenses and 150,000 Hire Expenses will be credited to the next voyage in the Posted column.
Related Configuration Flags
Note: The following configuration flags are set during implementation and should not be changed without first consulting the Veson Nautical Services team.
| Name/Flag | Description |
|---|---|
| Allocate TCI Hire to Voyage CFGAllocateTciHireToVoy |
|
| Allocate Bunkers to Voyage CFGAllocateBunkersToVoy |
|
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