How to Record DBA Insurance Audit Adjust
Recording the adjustment to Defense Base Act (DBA) insurance premiums following an annual audit of actual foreign payroll.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Insurance Expense - DBA | Debit | 3,200.00 | - |
| Accrued Liabilities | Credit | - | 3,200.00 |
💡 Accountant's Note
DBA insurance is initially paid based on estimates. This entry records the additional premium owed after the insurance carrier audits actual labor hours worked OCONUS (Outside Continental United States).
Practitioner & Systems Framework
💻 ERP Architecture
Ensure the expense is mapped to the appropriate fringe pool or direct project cost depending on the disclosure statement.
⚠️ Audit Flags
Significant variances between estimated and actual DBA premiums that were not reconciled timely.
📄 Required Documentation
Final audit statement from the insurance carrier and payroll records for the covered period.
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