diff --git a/documentation/poky-ref-manual/ref-variables.xml b/documentation/poky-ref-manual/ref-variables.xml
index f00f9038bb..4da61ff576 100644
--- a/documentation/poky-ref-manual/ref-variables.xml
+++ b/documentation/poky-ref-manual/ref-variables.xml
@@ -677,12 +677,6 @@
             </glossdef>
         </glossentry>
 
-        <glossentry id='var-LICENSE'><glossterm>LICENSE</glossterm>
-            <glossdef>
-                <para>The list of package source licenses.</para>
-            </glossdef>
-        </glossentry>
-
         <glossentry id='var-LIC_FILES_CHKSUM'><glossterm>LIC_FILES_CHKSUM</glossterm>
             <glossdef>
                 <para>Checksums of the license text in the recipe source code.</para>
@@ -700,6 +694,25 @@
             </glossdef>
         </glossentry>
 
+        <glossentry id='var-LICENSE'><glossterm>LICENSE</glossterm>
+            <glossdef>
+                <para>The list of package source licenses.</para>
+            </glossdef>
+        </glossentry>
+
+        <glossentry id='var-LICENSE_DIR'><glossterm>LICENSE_DIR</glossterm>
+            <glossdef>
+                <para>Path to additional licenses used during the build.
+                    By default, the Yocto Project uses <filename>COMMON_LICENSE_DIR</filename>  
+                    to define the directory that holds common license text used during the build. 
+                    The <filename>LICENSE_DIR</filename> variable allows you to extend that
+                    location to other areas that have additional licenses: 
+                    <literallayout class='monospaced'>
+  LICENSE_DIR += "/path/to/additional/common/licenses"
+                    </literallayout></para>
+            </glossdef>
+        </glossentry>
+
     </glossdiv>
 
     <glossdiv id='var-glossary-m'><title>M</title>