How to Record GFM Tagging and Labeling
How to record the labor and material costs specifically used for marking Government Furnished Material (GFM) upon receipt.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Indirect Manufacturing Overhead | Debit | 1,200.00 | - |
| Material/Label Inventory | Credit | - | 200.00 |
| Accrued Payroll | Credit | - | 1,000.00 |
💡 Accountant's Note
Per FAR 52.245-1, contractors must identify government property as such. The labor for tagging and the materials used are recorded as indirect costs unless the contract specifically allows for direct charging of property management activities.
Practitioner & Systems Framework
💻 ERP Architecture
Capture labor under a property management work order to validate the level of effort for DCMA reviews.
⚠️ Audit Flags
Property System Audit (PMSA) checking for compliance with physical marking requirements.
📄 Required Documentation
Property management plan and proof of physical marking (e.g., photo or inventory log).
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Discussion & Community Questions
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