How to Record DFARS Incident Response Labor
Accounting for internal labor costs dedicated to investigating and reporting a cyber incident under DFARS 252.204-7012.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Overhead - Cybersecurity Labor | Expense | 5,400.00 | - |
| Wages Payable | Liability | - | 5,400.00 |
💡 Accountant's Note
Internal labor used for forensic investigation and mandatory reporting of a cyber breach to the DoD is generally treated as an allowable overhead cost, provided it is not specifically excluded by the contract terms.
Practitioner & Systems Framework
💻 ERP Architecture
Establish a unique 'Cyber Incident Response' charge code to track labor hours separately from routine IT maintenance.
⚠️ Audit Flags
Charging incident response labor directly to a contract without specific authorization or CO approval.
📄 Required Documentation
Timesheets with notes referencing the incident number and the DoD reporting confirmation (e.g., from DIBNet).
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