How to Record FSS Price Reductions
Accounts for price reductions triggered under the GSA Federal Supply Schedule (FSS) Price Reductions Clause when commercial pricing drops below a specified threshold.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Revenue | Debit | 4,500.00 | - |
| Refund Liability - GSA | Credit | - | 4,500.00 |
💡 Accountant's Note
The Price Reductions Clause (GSAR 552.238-81) requires contractors to maintain the price relationship between the government and the basis of award customer, requiring a revenue reversal when commercial prices drop.
Practitioner & Systems Framework
💻 ERP Architecture
Use a contra-revenue account to track total price reductions for GSA compliance reporting.
⚠️ Audit Flags
Changes in commercial price lists not mirrored in the GSA Schedule pricing.
📄 Required Documentation
Basis of Award (BOA) pricing analysis and updated GSA Advantage price lists.
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