How to Record GFE Packing and Crating
Recording the costs of labor and materials used to pack and crate Government Furnished Equipment (GFE) for return or transfer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Contract Costs - GFE Handling | Debit | 3,500.00 | - |
| Materials Inventory | Credit | - | 1,500.00 |
| Accrued Payroll - Shipping Dept | Credit | - | 2,000.00 |
💡 Accountant's Note
When the government requires GFE to be returned or moved, the contractor records the packing, crating, and handling (PC&H) costs as direct contract expenses if the contract allows for such reimbursement.
Practitioner & Systems Framework
💻 ERP Architecture
Use a work order linked to the contract's GFE line item to capture all associated handling labor.
⚠️ Audit Flags
High material consumption in shipping departments without corresponding direct project charging.
📄 Required Documentation
Shipping instructions from the DCMA Property Administrator and a bill of materials for the crating.
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Discussion & Community Questions
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