How to Record DLA Price Adjustments
Records the recognition of economic price adjustments (EPA) on Defense Logistics Agency contracts due to market fluctuations.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - DLA | Asset | 15,000.00 | - |
| Contract Revenue - EPA Adjustments | Revenue | - | 15,000.00 |
💡 Accountant's Note
When the DLA triggers an EPA clause for material price changes, the contractor recognizes the upward adjustment as additional revenue and an increase in receivables.
Practitioner & Systems Framework
💻 ERP Architecture
Adjust the unit price in the sales order module to match the modified contract price.
⚠️ Audit Flags
Verification of the index used for the EPA calculation (e.g., BLS Producer Price Index).
📄 Required Documentation
Contract Modification (SF30) and the specific index data supporting the price shift.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
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.
Related Journal Entries
Defense, Aerospace & Government Contracting
Cost-Plus-Fixed-Fee (CPFF) Contract — Revenue Recognition as Costs Are Incurred
Defense, Aerospace & Government Contracting
Firm Fixed-Price (FFP) Contract — Cost-to-Cost Percentage of Completion Revenue
Defense, Aerospace & Government Contracting
Time & Materials (T&M) Contract — Revenue at Contractual Labor Rates Plus Material Cost
Discussion & Community Questions
Loading comments...