How to Record DFARS Supply Chain Risk Audit
Recording costs for auditing the supply chain for cybersecurity and counterfeit part risks as per DFARS 252.239-7018.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Overhead - Compliance Audits | Debit | 8,500.00 | - |
| Accrued Liabilities | Credit | - | 8,500.00 |
💡 Accountant's Note
Costs incurred to perform mandatory supply chain risk assessments are generally allowable and allocated through the Overhead or G&A pool depending on the company's CAS Disclosure Statement.
Practitioner & Systems Framework
💻 ERP Architecture
Charge to a non-billable overhead project code specifically for DFARS compliance.
⚠️ Audit Flags
Consistency in allocating compliance costs across all contracts.
📄 Required Documentation
Audit report, invoice from third-party auditor, or internal labor timecards.
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