How to Record GFE Cannibalization Labor
Recording labor costs for the authorized removal of parts from one unit of Government Furnished Equipment (GFE) to repair another unit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Indirect Costs - Material Management | Debit | 3,200.00 | - |
| Labor Clearing | Credit | - | 3,200.00 |
💡 Accountant's Note
Cannibalization must be authorized by the Government Property Administrator. The labor to perform the swap is generally an allowable indirect cost related to maintaining government property.
Practitioner & Systems Framework
💻 ERP Architecture
Labor should be charged to an overhead code specifically for property management or maintenance.
⚠️ Audit Flags
Physical inventory discrepancies in GFE often lead back to undocumented cannibalization.
📄 Required Documentation
Written authorization from the Contracting Officer or Property Administrator and updated property records in the GFP Module.
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