How to Record Gov Property Relocation Costs
Accounting for the physical relocation of Government Furnished Property (GFP) between contractor facilities or to a government site.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Contract Costs - Material Handling | Debit | 8,500.00 | - |
| Accrued Expenses | Credit | - | 8,500.00 |
💡 Accountant's Note
Under FAR 52.245-1, the costs of transporting and relocating government property are generally allowable and often directly chargeable if requested by the Contracting Officer.
Practitioner & Systems Framework
💻 ERP Architecture
Use a 'Material Handling' or 'Logistics' cost element within the contract WBS.
⚠️ Audit Flags
Relocation costs incurred without a written change order or direction from the PCO/ACO.
📄 Required Documentation
Shipping orders, DD Form 1149, and the written authorization to move the property.
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Discussion & Community Questions
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