How to Record GFP Sale Proceeds
Recording the proceeds from the authorized sale of Government Furnished Property (GFP) which must be credited to the government.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Debit | 2,500.00 | - |
| Accounts Payable - U.S. Government | Credit | - | 2,500.00 |
💡 Accountant's Note
Proceeds from the sale of government property are not income to the contractor; they must be remitted to the government or applied as a credit to the contract as directed by the Contracting Officer.
Practitioner & Systems Framework
💻 ERP Architecture
Track through a 'Government Property' liability account until the check is cut to the Treasury.
⚠️ Audit Flags
Property management system reviews (FAR 52.245-1).
📄 Required Documentation
Plant Clearance Officer (PLCO) approval and bill of sale.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
Defense, Aerospace & Government Contracting
Cost-Plus-Fixed-Fee (CPFF) Contract — Revenue Recognition as Costs Are Incurred
Defense, Aerospace & Government Contracting
Firm Fixed-Price (FFP) Contract — Cost-to-Cost Percentage of Completion Revenue
Defense, Aerospace & Government Contracting
Time & Materials (T&M) Contract — Revenue at Contractual Labor Rates Plus Material Cost
Discussion & Community Questions
Loading comments...