How to Record Facility Clearance Costs
Recording administrative and processing costs for maintaining a Facility Security Clearance (FCL).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Allowable G&A - Security Administration | Debit | 3,200.00 | - |
| Accounts Payable | Credit | - | 3,200.00 |
💡 Accountant's Note
FCL costs are generally allowable as indirect G&A expenses as they are necessary for the performance of classified government work.
Practitioner & Systems Framework
💻 ERP Architecture
Charge to a specific 'Security' department within the G&A pool for better visibility during DCAA audits.
⚠️ Audit Flags
Inclusion of personal security clearance costs that are not related to the business facility.
📄 Required Documentation
Invoices from security consultants or DCSA processing notifications.
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...