How to Record Patent Prosecution Costs
Recording legal and filing costs related to patenting an invention where the government obtains a royalty-free license.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Patent Prosecution Expense (Allowable) | Expense | 3,500.00 | - |
| Accrued Liabilities | Liability | - | 3,500.00 |
💡 Accountant's Note
Per FAR 31.205-30, costs for preparing and filing patent applications are generally allowable if the government receives a royalty-free license to use the invention.
Practitioner & Systems Framework
💻 ERP Architecture
Charge these costs to a specific project code linked to the R&D effort to ensure visibility in the incurred cost submission.
⚠️ Audit Flags
Legal fees not tied to specific contract performance or government-use licenses.
📄 Required Documentation
Patent filing receipts, legal invoices, and evidence of the government's royalty-free license.
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Discussion & Community Questions
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