How to Record GFE Transportation Insurance
Recording insurance premiums specifically for the transit of Government Furnished Equipment where required by the contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Contract Costs - Insurance | Debit | 1,500.00 | - |
| Accounts Payable | Credit | - | 1,500.00 |
💡 Accountant's Note
When a contract requires the contractor to insure GFE during transit (contrary to the general rule that the Government self-insures), the premium is recorded as a direct cost to that specific contract.
Practitioner & Systems Framework
💻 ERP Architecture
Assign to the specific project code or WBS element for GFE logistics.
⚠️ Audit Flags
Verification of contract clauses requiring insurance coverage for government property.
📄 Required Documentation
Insurance policy endorsement and specific contract clause referencing insurance requirements.
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