How to Record CPAF Rollover Fees
Recording the transfer of unearned award fees from one evaluation period to a subsequent period in a Cost Plus Award Fee (CPAF) contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unbilled Receivables - Award Fee | Asset | 12,000.00 | - |
| Deferred Award Fee Revenue | Liability | - | 12,000.00 |
💡 Accountant's Note
When a contracting officer allows unearned fee to 'roll over' into a future period for re-evaluation, the potential revenue is recognized as deferred until the new criteria are met.
Practitioner & Systems Framework
💻 ERP Architecture
Update the revenue recognition project module to reflect the new performance period.
⚠️ Audit Flags
Contract modifications specifically authorizing the rollover of funds.
📄 Required Documentation
Award Fee Determination Letter and Contract Modification.
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Discussion & Community Questions
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