How to Record DFARS Cyber Recovery Costs
Costs incurred to restore systems and data following a cybersecurity incident involving CDI.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Cyber Recovery Expense | Debit | 12,000.00 | - |
| Cash | Credit | - | 12,000.00 |
💡 Accountant's Note
While reporting is required under DFARS 252.204-7012, recovery costs for general system breaches are often classified as unallowable.
Practitioner & Systems Framework
💻 ERP Architecture
Segregate into a specific unallowable cost pool to prevent overhead allocation.
⚠️ Audit Flags
Recovery costs mixed with allowable IT maintenance pools.
📄 Required Documentation
Cyber incident report and third-party forensic invoices.
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