How to Record G&A on Subcontractor Costs
The application of General and Administrative (G&A) expenses to subcontractor costs as part of the total cost input base under CAS 410.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Work-in-Process (G&A Allocation) | Asset | 850.00 | - |
| G&A Overhead Applied | Contra-Expense | - | 850.00 |
💡 Accountant's Note
Under a total cost input (TCI) base, G&A is applied to all direct costs, including subcontractor labor and materials. This entry captures the indirect burden associated with managing subcontracts.
Practitioner & Systems Framework
💻 ERP Architecture
Configure the burdening engine to apply the G&A rate to the specific cost elements representing subcontractor invoices.
⚠️ Audit Flags
Inconsistent application of G&A to subcontracts compared to the disclosed cost accounting practice.
📄 Required Documentation
CAS Disclosure Statement (CASB DS-1) and monthly overhead rate calculation spreadsheets.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
Defense, Aerospace & Government Contracting
Cost-Plus-Fixed-Fee (CPFF) Contract — Revenue Recognition as Costs Are Incurred
Defense, Aerospace & Government Contracting
Firm Fixed-Price (FFP) Contract — Cost-to-Cost Percentage of Completion Revenue
Defense, Aerospace & Government Contracting
Time & Materials (T&M) Contract — Revenue at Contractual Labor Rates Plus Material Cost
Discussion & Community Questions
Loading comments...