Defense, Aerospace & Government Contracting

How to Record Overseas Housing Allowance

Records the payment of OHA to employees stationed at foreign OCONUS locations under contract requirements.

Account NameTypeDebit ($)Credit ($)
Direct Labor Fringe - OHAExpense4,500.00-
Accrued PayrollLiability-4,500.00

💡 Accountant's Note

Overseas Housing Allowance (OHA) is a specific fringe benefit often reimbursed on cost-plus contracts for personnel deployed abroad, subject to Joint Travel Regulation (JTR) limits.

Practitioner & Systems Framework

💻 ERP Architecture

Use a unique pay code to ensure the allowance is excluded from base labor for overhead application if required by the CAS disclosure.

⚠️ Audit Flags

Allowances exceeding the Department of State or JTR established caps for the specific location.

📄 Required Documentation

Foreign lease agreement and Department of State standardized regulations (DSSR) tables.

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Expert Analysis by Qusai Ahmad

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Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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