How to Record GFM Incoming Inspection
Records the labor and overhead costs associated with the initial inspection and verification of Government Furnished Material (GFM) upon receipt.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Indirect Manufacturing Overhead - Inspection Labor | Debit | 2,500.00 | - |
| Accrued Payroll | Credit | - | 2,500.00 |
💡 Accountant's Note
Incoming inspection of GFM is typically treated as an indirect cost within a manufacturing or material handling pool unless the contract specifically allows for direct charging of receipt inspection.
Practitioner & Systems Framework
💻 ERP Architecture
Capture labor hours in the Time & Labor module using a specific indirect charge code mapped to the material overhead pool.
⚠️ Audit Flags
Charging inspection labor directly to a cost-plus contract without specific authorization in the SOW.
📄 Required Documentation
Receiving Report (DD254/DD1149), inspection logs, and labor timecards.
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Discussion & Community Questions
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