How to Record ASBCA Claim Settlement
Records the favorable settlement of a contract dispute following a decision by the Armed Services Board of Contract Appeals.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - US Government | Debit | 250,000.00 | - |
| Other Income - Settlement Proceeds | Credit | - | 250,000.00 |
💡 Accountant's Note
This entry records the revenue resulting from a legal settlement. Costs associated with pursuing the claim (legal fees) are typically unallowable under FAR 31.205-47, but the settlement itself is recorded as contract-related income.
Practitioner & Systems Framework
💻 ERP Architecture
Record under a specific non-operating or settlement-related project code to isolate from normal operations.
⚠️ Audit Flags
Attempting to include legal pursuit costs as allowable overhead expenses.
📄 Required Documentation
Executed settlement agreement and ASBCA Final Decision document.
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Discussion & Community Questions
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