How to Record CPSR Compliance Labor
Records the internal labor costs associated with preparing for and supporting a Contractor Purchasing System Review (CPSR) by DCMA.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| G&A Labor - Compliance | Expenses | 4,500.00 | - |
| Accrued Payroll | Liability | - | 4,500.00 |
💡 Accountant's Note
Labor costs for maintaining a compliant purchasing system are generally allowable indirect costs and are typically allocated to the G&A pool or a specific procurement overhead pool.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure labor hours are coded to a specific indirect work order designated for compliance support rather than direct contract hours.
⚠️ Audit Flags
DCMA scheduling of a CPSR or significant changes in procurement volume that trigger a system review requirement.
📄 Required Documentation
Timesheets, CPSR readiness checklist, and internal memos documenting the scope of the review support.
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