Defense, Aerospace & Government Contracting

How to Record ITAR Part 130 Expenses

How to record political contributions or fees associated with export licenses under ITAR Part 130, which are typically unallowable.

Account NameTypeDebit ($)Credit ($)
Unallowable ITAR Part 130 FeesExpense12,000.00-
Cash/BankAsset-12,000.00

💡 Accountant's Note

ITAR Part 130 requires disclosure of certain fees, commissions, and political contributions. Under FAR 31.205-22, these costs are generally unallowable and must be segregated from the indirect cost pools.

Practitioner & Systems Framework

💻 ERP Architecture

Set up a unique 'Unallowable' account code that is excluded from the indirect rate calculation in the ERP.

⚠️ Audit Flags

Auditors specifically scan for ITAR-related payments to foreign agents or political entities.

📄 Required Documentation

Export license application, Part 130 disclosure statement, and payment confirmation.

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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.

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