How to Record GFP Physical Inventory Costs
Records the labor and administrative costs associated with performing mandatory physical inventories of Government Furnished Property (GFP) per FAR 52.245-1.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Overhead - Property Management Labor | Expense | 4,500.00 | - |
| Accrued Payroll | Liability | - | 4,500.00 |
💡 Accountant's Note
Contractors are required to periodically perform physical inventories of GFP. These costs are typically treated as indirect overhead unless the contract specifically allows direct charging for property management.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure labor is coded to an indirect charge number mapped to the property management overhead pool.
⚠️ Audit Flags
Discrepancies between the property management system and the general ledger labor distribution for property personnel.
📄 Required Documentation
Physical inventory plan, inventory results report, and timecards mapped to the inventory project code.
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