How to Record GFE Disposal Costs
Records the allowable costs associated with the disposition and disposal of Government Furnished Equipment (GFE) as directed by the Plant Clearance Officer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| GFE Disposal Expense (Allowable) | Expense | 12,500.00 | - |
| Accrued Liabilities | Liability | - | 12,500.00 |
💡 Accountant's Note
Costs incurred to dispose of GFE are generally allowable under FAR 31.205-42 if they result from the termination of a contract or the end of a program's lifecycle, provided the contractor follows government-approved disposal procedures.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure costs are captured in a distinct work order tied to the disposal authorization.
⚠️ Audit Flags
Disposal costs without a formal SF 1428 Plant Clearance Request approval.
📄 Required Documentation
SF 1428, Plant Clearance Officer (PLCO) directions, and disposal subcontractor invoices.
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