INT-ACCT-4.1.2

The APA Statement, Settlement and Gratuities

Shows how to run a daily APA statement, produce a final settlement returning the unspent balance, and forecast a mid-charter top-up through the captain and broker. Covers how gratuities are received, distributed and recorded, and why they never come from the APA.

It is the last morning of the charter. The guests want breakfast, the tenders are being stowed, and in ninety minutes the principal charterer expects to sit down with you and go through an itemised statement of EUR 60,000 of their money. If your APA file is current, this takes fifteen minutes and ends with a handshake. If it is not, it ends with a dispute that reaches the broker.

The Running APA Statement

The statement is maintained daily, not reconstructed at the end. Every line carries a date, a vendor, an amount, a currency, a rate if converted, and a receipt reference.

Category Spend (EUR)
Fuel and lubricants 18,450
Dockage, port and agency fees 11,180
Provisions and beverage 11,240
Guest requests: restaurants, transfers, excursions 4,900
Flowers 1,450
Laundry and dry cleaning 780
Total spend 48,000

18,450 + 11,180 + 11,240 + 4,900 + 1,450 + 780 = 48,000.

Final Settlement

Line EUR
APA received 60,000
Total spend evidenced (48,000)
Balance returned to the charterer 12,000

60,000 − 48,000 = 12,000, returned to the charterer at the end of the charter, normally by transfer through the broker or management company, with an itemised statement and the supporting receipts. The guest signs the statement; you keep a copy and send one to the broker and management company.

Topping Up Mid-Charter

Monitor the burn rate daily. A common trigger is remaining APA falling below roughly 20–25%, but the real test is a forecast to the end of the charter.

Worked example. By day 4 of 7, spend is EUR 41,500 of the EUR 60,000 APA, leaving EUR 18,500. Forecast remaining spend:

Forecast item EUR
Fuel 9,500
Dockage and agency 4,200
Provisions and beverage 3,000
Guest requests 5,500
Forecast to complete 22,200

22,200 − 18,500 = a projected shortfall of EUR 3,700. You inform the captain immediately with the figures; the captain requests a top-up (say EUR 10,000) through the broker. The crew never ask the guest for money directly.

Gratuities

  • Paid at the guest's discretion, usually to the captain, never solicited and never deducted from the APA.
  • Distributed per the yacht's written policy — commonly equal shares, sometimes weighted by rank. The policy should exist before the money arrives.
  • Recorded: amount, date, charter, distribution. Cash tips are counted with a witness.
  • Personal tax treatment varies by nationality and residence, and is each crew member's own obligation.

Onboard Notes

  • Update the APA file every single evening. A four-day gap is a dispute.
  • Never move APA money between charters or use it to cover an owner cost. It is held in trust.
  • If a guest disputes a line, do not argue: produce the receipt, and refer the question to the captain and broker.

Practice questions

5 questions
recallcore

recall · core

What must every line of a running APA statement carry, and how often is it updated?

scenariocore

scenario · core

APA received was EUR 60,000. Spend was: fuel 18,450; dockage and agency 11,180; provisions and beverage 11,240; guest requests 4,900; flowers 1,450; laundry 780. Calculate the total and the settlement, and describe how the settlement is completed.

scenariocore

scenario · core

By day 4 of a 7-day charter you have spent EUR 41,500 of a EUR 60,000 APA. You forecast fuel 9,500, dockage and agency 4,200, provisions 3,000 and guest requests 5,500 to complete. What is the position and what do you do?

recallstretch

recall · stretch

How should gratuities be received, distributed and recorded?

oralstretch

oral · stretch

At settlement the charterer disputes a EUR 1,450 flowers line, saying they never asked for that many arrangements. How do you handle it?

Independent study. xplor is not an IAMI- or PYA-accredited GUEST training provider. This course covers the ground assessed in GUEST Unit 21; it awards no GUEST unit, certificate or Certificate of Competency and does not count toward one. It is not tax, legal or accounting advice.

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