Demurrage and Despatch Invoices

A demurrage invoice is a document that outlines additional charges imposed when a buyer or transport provider exceeds the agreed-upon time for loading or unloading of goods; for example, at a port. The invoice includes the duration of the delay, the applicable rate, and the total amount due. Conversely, a demurrage invoice may be for 'despatch', which is a reward granted when loading/unloading operations are completed faster than stipulated in the contract, reducing costs.

Demurrage invoices can be raised for Despatch Orders that have demurrage/despatch conditions defined in the applicable set of contract terms. Alternatively, the demurrage/despatch can be included as part of the sales or purchase invoice.

To create a demurrage invoice, ensure the despatch order is configured to not include the demurrage/despatch calculation as part of the sales invoice, by leaving Include Dem/Des in Sales (or Purchase) Invoice unchecked when creating the despatch order.

Journal Entries for Demurrage and Despatch Invoices

Creation of journal entries requires charts of accounts to be configured for the Demurrage Invoice and Despatch Invoice document type. See Charts of Accounts.