How to Record GFM Disposition Freight Costs
Recording the outbound transportation costs for Government Furnished Material (GFM) being returned to the government or transferred to another contractor.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Direct Costs - Logistics | Debit | 1,250.00 | - |
| Accounts Payable | Credit | - | 1,250.00 |
💡 Accountant's Note
Disposition freight is often a direct charge to the specific contract under which the GFM was provided, provided the contract terms (like FAR 52.245-1) authorize such shipment.
Practitioner & Systems Framework
💻 ERP Architecture
Assign the cost to the specific Project ID or WBS element associated with the contract closure.
⚠️ Audit Flags
Charging disposition freight as an indirect cost when the contract requires direct billing.
📄 Required Documentation
Shipping instructions from the Plant Clearance Officer (PLCO) and the freight invoice.
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Discussion & Community Questions
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