How to Record FMS Expediting Fees
Recording fees paid to suppliers to accelerate delivery schedules for components specifically for a Foreign Military Sales (FMS) contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Material Cost - FMS | Asset | 1,500.00 | - |
| Accounts Payable | Liability | - | 1,500.00 |
💡 Accountant's Note
Expediting fees are often allowable and allocable to FMS contracts if the schedule acceleration is required to meet the FMS case delivery requirements.
Practitioner & Systems Framework
💻 ERP Architecture
Use a specific sub-element of cost (SEOC) to track expediting fees separately from base material costs.
⚠️ Audit Flags
Inclusion of expediting fees on firm-fixed-price contracts without prior price adjustment authorization.
📄 Required Documentation
Supplier invoice showing expediting charge and justification of need for acceleration.
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Discussion & Community Questions
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