How to Record GFE Rental Charges
Accounting for rental payments to the government for the use of Government Furnished Equipment on commercial work.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Rental Expense | Debit | 2,500.00 | - |
| Cash | Credit | - | 2,500.00 |
💡 Accountant's Note
When GFE is used for non-government work, the contractor often must pay a rental fee. These fees are typically unallowable for reimbursement on government contracts and must be segregated.
Practitioner & Systems Framework
💻 ERP Architecture
Map this to an 'Unallowable' natural account code to ensure it is excluded from the indirect rate calculation.
⚠️ Audit Flags
Use of government property for commercial projects without a rental agreement or payment.
📄 Required Documentation
Rental agreement, usage logs (machine hours), and payment receipts to the US Treasury.
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Discussion & Community Questions
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