Defense, Aerospace & Government Contracting

How to Record CMMC Level 2 Assessment Fees

Fees paid to a C3PAO for a formal CMMC Level 2 certification assessment.

Account NameTypeDebit ($)Credit ($)
G&A Expense - Professional FeesDebit35,000.00-
Accounts PayableCredit-35,000.00

💡 Accountant's Note

CMMC assessment fees are considered a cost of doing business with the DoD and are typically allocated via G&A overhead pools.

Practitioner & Systems Framework

💻 ERP Architecture

Record in G&A overhead pool as a non-recurring professional service fee.

⚠️ Audit Flags

Assessment of segments not performing government work.

📄 Required Documentation

C3PAO contract, assessment results, and payment confirmation.

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Expert Analysis by Qusai Ahmad

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Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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