How to Record FMS Marketing Consultant Costs
Accounting for third-party consultant fees related to foreign military sales (FMS) which are often unallowable under FAR 31.205-38.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Selling Expenses | Debit | 15,000.00 | - |
| Accounts Payable | Credit | - | 15,000.00 |
💡 Accountant's Note
Segregates costs for foreign marketing consultants to ensure they are excluded from the indirect cost rate calculations per FAR regulations.
Practitioner & Systems Framework
💻 ERP Architecture
Map this account to a non-recoverable/unallowable cost center in the ERP chart of accounts.
⚠️ Audit Flags
High risk for DCAA audit; strict scrutiny of 'consultant' vs 'technical advisor' labels.
📄 Required Documentation
Consultant agreement, invoices detailing activities, and a record of the exclusion from the ICE submission.
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Discussion & Community Questions
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