How to Record GFE Abandonment in Place Costs
Records the expenses related to the authorized abandonment of Government Furnished Equipment at the contractor facility.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| GFE Disposal and Restoration Expense | Debit | 12,000.00 | - |
| Accrued Liabilities | Credit | - | 12,000.00 |
💡 Accountant's Note
When the government authorizes abandonment in place per FAR 45.604-2, the contractor may incur costs for environmental stabilization or safety measures to secure the property.
Practitioner & Systems Framework
💻 ERP Architecture
Post to a specific overhead pool designated for property management if not directly billable.
⚠️ Audit Flags
Recording abandonment costs without written Contracting Officer authorization; inclusion of non-allowable site improvements.
📄 Required Documentation
Contracting Officer's Letter of Abandonment and cost estimates for site stabilization.
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Discussion & Community Questions
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