How to Record FedRAMP Certification Costs
Recording the costs associated with achieving FedRAMP certification for cloud services provided to federal agencies.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Compliance Costs - FedRAMP | Asset | 50,000.00 | - |
| Accounts Payable | Liability | - | 50,000.00 |
💡 Accountant's Note
Costs for initial FedRAMP certification can often be capitalized or deferred and amortized over the life of the authorization period if they provide future economic benefit.
Practitioner & Systems Framework
💻 ERP Architecture
Track costs under a dedicated Internal Project Code to separate certification from routine maintenance.
⚠️ Audit Flags
Amortization period exceeding the initial 3-year authorization cycle.
📄 Required Documentation
Invoices from 3PAO (Third Party Assessment Organization) and FedRAMP PMO correspondence.
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Discussion & Community Questions
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