How to Record DCMA Level II CAR Costs
Records the administrative labor costs associated with investigating and responding to a DCMA Level II Corrective Action Report (CAR).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Allowable G&A - Compliance Labor | Debit | 5,600.00 | - |
| Accrued Payroll | Credit | - | 5,600.00 |
💡 Accountant's Note
While the underlying failure might be problematic, the costs of internal investigation and root cause analysis for a Level II CAR are generally allowable administrative expenses.
Practitioner & Systems Framework
💻 ERP Architecture
Capture labor under a unique internal task code linked to the specific CAR number.
⚠️ Audit Flags
Significant hours charged to a non-billable compliance code after a DCMA audit.
📄 Required Documentation
DCMA Form 2691 (Corrective Action Request) and the contractor's formal CAP response.
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