How to Record CAS 406 Alignment
Adjusting indirect cost pools to ensure alignment with the contractor's designated cost accounting period as per CAS 406.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Overhead Pool Adjustment | Debit | 12,000.00 | - |
| Accrued Liabilities - Indirects | Credit | - | 12,000.00 |
💡 Accountant's Note
CAS 406 requires that the same period be used for accumulating costs in an indirect cost pool as is used for establishing the allocation base. This entry corrects timing mismatches at year-end.
Practitioner & Systems Framework
💻 ERP Architecture
Configure the Fiscal Calendar in the ERP to match the CAS Disclosure Statement.
⚠️ Audit Flags
Variances between the fiscal year end and the cost accounting period end.
📄 Required Documentation
CAS Disclosure Statement, Year-end Reconciliation, and Indirect Pool Analysis.
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