How to Record GFM Modification Labor
Recording internal labor costs associated with modifying Government Furnished Material (GFM) to meet technical specifications.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| WIP - GFM Modification Labor | Asset | 12,000.00 | - |
| Direct Labor - Applied | Revenue | - | 12,000.00 |
💡 Accountant's Note
Labor spent altering or upgrading GFM is capitalized into Work in Process (WIP) specifically for the modification effort under the contract terms.
Practitioner & Systems Framework
💻 ERP Architecture
Specific project task code for GFM modification.
⚠️ Audit Flags
Classification of labor as repair vs. modification.
📄 Required Documentation
Approved Engineering Change Proposals (ECPs) and labor timesheets.
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