How to Record GFE Re-utilization Costs
Accounting for the labor and materials used to refurbish Government Furnished Equipment (GFE) for use on a follow-on contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Project Costs - Materials | Debit | 4,500.00 | - |
| Direct Project Labor | Debit | 8,200.00 | - |
| Overhead - Applied | Credit | - | 12,700.00 |
💡 Accountant's Note
When GFE is transitioned between contracts, the refurbishment costs are charged as direct costs to the receiving contract, provided such costs are authorized by the contracting officer.
Practitioner & Systems Framework
💻 ERP Architecture
Use specific project-sub-tasks to track GFE refurbishment separate from production labor.
⚠️ Audit Flags
Charging refurbishment to overhead instead of the specific contract benefiting from the equipment.
📄 Required Documentation
Contracting Officer authorization for re-utilization and refurbishment labor hours.
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Discussion & Community Questions
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