How to Record FMS Freight Forwarding
Recording the logistics and handling costs for shipping equipment under Foreign Military Sales (FMS) contracts via designated freight forwarders.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| FMS Contract Direct Costs - Logistics | Expense | 12,000.00 | - |
| Accounts Payable | Liability | - | 12,000.00 |
💡 Accountant's Note
Direct logistics costs incurred for FMS delivery are recorded as direct contract costs, often subject to specific DSCA shipping guidelines.
Practitioner & Systems Framework
💻 ERP Architecture
Assign to the specific FMS task order within the project module to ensure proper burdening.
⚠️ Audit Flags
Verification of Export Release (ER) and compliance with the Letter of Offer and Acceptance (LOA) shipping terms.
📄 Required Documentation
Commercial Invoice, Ocean Bill of Lading or Air Waybill, and Freight Forwarder's detailed invoice.
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Discussion & Community Questions
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