How to Record DD250 Shipment Acceptance
Recognition of revenue and cost of goods sold upon formal government acceptance via Form DD-250.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Government | Debit | 150,000.00 | - |
| Contract Revenue | Credit | - | 150,000.00 |
| Cost of Goods Sold | Debit | 110,000.00 | - |
| Work in Process (WIP) | Credit | - | 110,000.00 |
💡 Accountant's Note
In defense contracting, revenue is often recognized when the Material Inspection and Receiving Report (DD Form 250) is signed by the government representative.
Practitioner & Systems Framework
💻 ERP Architecture
Triggered by the 'Shipment' or 'Fulfillment' module linked to a contract line item (CLIN).
⚠️ Audit Flags
Discrepancy between the date of government signature and the fiscal period of revenue recognition.
📄 Required Documentation
Signed DD Form 250 or WAWF (Wide Area Workflow) acceptance notification.
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