How to Record GFM In-Bound Freight Costs
Records the allowable costs associated with transporting Government Furnished Material (GFM) from a government depot to the contractor facility.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Contract Costs - GFM Freight | Expense | 4,500.00 | - |
| Accounts Payable | Liability | - | 4,500.00 |
💡 Accountant's Note
Contractors often pay for the transportation of GFM if specified in the contract terms. These costs are typically allowable as direct costs to the contract.
Practitioner & Systems Framework
💻 ERP Architecture
Link these costs to the specific contract project code and GFM tracking module.
⚠️ Audit Flags
Verification of freight invoices against DD Form 1149 or 1348 shipping documents.
📄 Required Documentation
Bill of Lading, Freight Invoice, and Government Shipping Document (DD Form 1149).
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