How to Record IDIQ Minimum Guarantee
Recording the financial obligation for the minimum order quantity guaranteed to a contractor under an Indefinite Delivery/Indefinite Quantity contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Contract Costs | Asset | 50,000.00 | - |
| Accrued Minimum Guarantee Liability | Liability | - | 50,000.00 |
💡 Accountant's Note
When an IDIQ contract is signed with a guaranteed minimum, the contractor records a liability for the performance obligation and a corresponding deferred cost asset until task orders are issued.
Practitioner & Systems Framework
💻 ERP Architecture
Often handled in the 'Contract Setup' module to track obligation vs. actual funding.
⚠️ Audit Flags
Discrepancies between contract award minimums and recorded liabilities during DCAA audits.
📄 Required Documentation
Executed IDIQ Base Contract and SF-33 or SF-1449.
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Discussion & Community Questions
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