How to Record CMMC Level 3 Assessment Costs
Accounting for the fees paid to Certified Third-Party Assessment Organizations (C3PAO) for CMMC Level 3 certification.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Regulatory Compliance Expense (G&A) | debit | 75,000.00 | - |
| Accounts Payable | credit | - | 75,000.00 |
💡 Accountant's Note
Records the costs of the formal assessment process for Cybersecurity Maturity Model Certification (CMMC) Level 3 as an indirect G&A expense.
Practitioner & Systems Framework
💻 ERP Architecture
Post to a specific G&A sub-account for cybersecurity compliance to track total cost of ownership.
⚠️ Audit Flags
Treatment of certification costs as allowable vs unallowable based on FAR 31.205 requirements.
📄 Required Documentation
Contract with the C3PAO and the final assessment report or certificate.
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