Defense, Aerospace & Government Contracting

How to Record DCMA Earned Value Review Costs

Records labor and overhead costs specifically associated with supporting a DCMA Earned Value Management System (EVMS) surveillance review.

Account NameTypeDebit ($)Credit ($)
Overhead - Regulatory Compliance LaborExpense12,000.00-
Direct Labor - Internal SupportAsset-12,000.00

💡 Accountant's Note

Costs for general system surveillance are typically treated as indirect overhead, whereas costs for a contract-specific review might be direct depending on the disclosure statement.

Practitioner & Systems Framework

💻 ERP Architecture

Use an overhead work order to collect hours from Project Controls and Finance personnel.

⚠️ Audit Flags

Inconsistent treatment of compliance costs between direct and indirect pools.

📄 Required Documentation

DCMA Review Notification and employee time logs coded to the EVMS surveillance task.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

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

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