Defense, Aerospace & Government Contracting

How to Record DFARS 7012 Monitoring Costs

Records the recurring costs of internal network monitoring required by DFARS 252.204-7012 for CUI protection.

Account NameTypeDebit ($)Credit ($)
Cybersecurity Compliance ExpenseDebit8,500.00-
Accounts PayableCredit-8,500.00

💡 Accountant's Note

Ongoing monitoring to detect and report cyber incidents is an allowable indirect cost, often pooled under IT or G&A.

Practitioner & Systems Framework

💻 ERP Architecture

Often allocated across all contracts via G&A or overhead pool

⚠️ Audit Flags

Consistency with the company's System Security Plan (SSP)

📄 Required Documentation

Service provider invoices or internal SOC labor logs

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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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