How to Record CAP Transfer to Gov
Records the transfer of title and physical delivery of Contractor Acquired Property (CAP) to the government, moving it from inventory to cost of sales.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cost of Sales - CAP | Expense | 15,000.00 | - |
| Contractor Acquired Property Inventory | Asset | - | 15,000.00 |
💡 Accountant's Note
When the government takes title to property purchased by the contractor for contract performance, the asset is removed from the contractor's books and recognized as a contract cost.
Practitioner & Systems Framework
💻 ERP Architecture
Use the inventory 'Issue to Project' function to credit the asset account and debit the project cost account.
⚠️ Audit Flags
Discrepancies between the DD1149 shipping document and the general ledger asset value.
📄 Required Documentation
DD Form 1149 or DD Form 250, and the Government Property Records update confirmation.
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Expert Analysis by Qusai Ahmad
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Discussion & Community Questions
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