How to Record Idle Facility Costs
Accounting for the unallowable costs of completely unused facilities per FAR 31.205-17.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Expense - Idle Facilities | Expense | 8,000.00 | - |
| Cash or Accounts Payable | Liability | - | 8,000.00 |
💡 Accountant's Note
Costs of idle facilities are generally unallowable unless they are necessary to meet fluctuations in workload or were necessary when acquired.
Practitioner & Systems Framework
💻 ERP Architecture
Map these costs to a '999' or similar non-reimbursable account code in the general ledger.
⚠️ Audit Flags
High facility maintenance costs on programs with declining volume or terminated contracts.
📄 Required Documentation
Facility utilization report and proof of efforts to lease or sell the idle capacity.
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