How to Record Interest on Overpayments
Records the payment of interest to the government for overpayments received, as required by FAR 52.232-17.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Interest Expense | Expense | 4,200.00 | - |
| Cash | Asset | - | 4,200.00 |
💡 Accountant's Note
Interest paid to the government due to contract overpayments is expressly unallowable under FAR 31.205-20 and must be excluded from any indirect cost pools.
Practitioner & Systems Framework
💻 ERP Architecture
Map this cost to a '999' or 'Unallowable' suffix in the Chart of Accounts.
⚠️ Audit Flags
Interest payments found in allowable expense accounts during DCAA audit.
📄 Required Documentation
Demand letter from the Contracting Officer, calculation of interest per Treasury rates.
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Discussion & Community Questions
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