Defense, Aerospace & Government Contracting

How to Record Defense Subcontracting Plan Prep

Records the labor costs associated with developing the Small Business Subcontracting Plan required by FAR 19.702.

Account NameTypeDebit ($)Credit ($)
Allowable G&A - Procurement SupportDebit2,800.00-
Accrued PayrollCredit-2,800.00

💡 Accountant's Note

Administrative effort to support socioeconomic programs like the Small Business Subcontracting Plan is an allowable indirect cost.

Practitioner & Systems Framework

💻 ERP Architecture

Assign a distinct sub-activity code within the G&A pool for Small Business Liaison Officer (SBLO) activities.

⚠️ Audit Flags

Large amounts of labor charged to subcontracting plans for projects where no plan was actually required.

📄 Required Documentation

Copy of the plan submitted to the DCMA Small Business Coordinator.

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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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