How to Record FAR 31.205-38 Selling
Recording the segregation of unallowable selling and marketing costs according to FAR 31.205-38.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Selling Expense | Expense | 12,000.00 | - |
| Allowable G&A Expense | Expense | - | 12,000.00 |
💡 Accountant's Note
Certain selling costs, such as generalized market research or advertising not related to specific contract requirements, are unallowable and must be moved to an unallowable cost pool.
Practitioner & Systems Framework
💻 ERP Architecture
Create sub-accounts for 'Selling' with an 'Unallowable' attribute for automatic exclusion from the indirect rate calculation.
⚠️ Audit Flags
High marketing-to-revenue ratios or generic branding campaigns.
📄 Required Documentation
Marketing brochures, media buy invoices, and internal labor timecards for sales staff.
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