How to Record Foreign Post Differential
Records additional compensation paid to employees for service at overseas locations where environmental conditions are notably difficult, per FAR 31.205-6.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Labor - Foreign Post Differential | Expense | 1,200.00 | - |
| Accrued Payroll | Liability | - | 1,200.00 |
💡 Accountant's Note
Post differential is an allowable cost if it follows the Department of State Standardized Regulations (DSSR) rates and is applied consistently to all employees in similar circumstances.
Practitioner & Systems Framework
💻 ERP Architecture
Setup a specific earning code in the payroll system to track differential pay separately from base pay for CAS compliance.
⚠️ Audit Flags
Payments exceeding DSSR maximum rates or lack of supporting documentation for the employee's location.
📄 Required Documentation
Employment agreement detailing the differential and the DSSR rate table applicable to the period.
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