Defense, Aerospace & Government Contracting

How to Record GFM Excessing Labor

Captures the labor hours spent identifying, cataloging, and preparing Government Furnished Material (GFM) for the official excessing/disposal process.

Account NameTypeDebit ($)Credit ($)
Direct Labor - Contract Closeout/GFMExpense3,200.00-
Accrued PayrollLiability-3,200.00

💡 Accountant's Note

Labor for GFM disposition is an allowable direct cost during contract closeout or when GFM is no longer required for performance, as per FAR 45.

Practitioner & Systems Framework

💻 ERP Architecture

Assign a specific labor category or task code for 'Property Management - Excessing' to track these costs for audit.

⚠️ Audit Flags

Excessive labor hours relative to the volume of property being excessed.

📄 Required Documentation

Plant Clearance Automated Reutilization Screening System (PCARSS) entries and labor timesheets with activity descriptions.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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