How to Record Progress Payments
Records the receipt of progress payments from the government under FAR 52.232-16 based on costs incurred.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset | 100,000.00 | - |
| Progress Payments - Contra Inventory | Contra-Asset | - | 100,000.00 |
💡 Accountant's Note
Progress payments are financing payments from the government. They are recorded as a contra-asset against inventory until delivery occurs.
Practitioner & Systems Framework
💻 ERP Architecture
In Deltek Costpoint, this is handled through the Progress Payment Billing module.
⚠️ Audit Flags
Mismatch between Form SF1443 and general ledger balances.
📄 Required Documentation
SF1443, evidence of incurred costs, and government payment remittance.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
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.
Related Journal Entries
Defense, Aerospace & Government Contracting
Cost-Plus-Fixed-Fee (CPFF) Contract — Revenue Recognition as Costs Are Incurred
Defense, Aerospace & Government Contracting
Firm Fixed-Price (FFP) Contract — Cost-to-Cost Percentage of Completion Revenue
Defense, Aerospace & Government Contracting
Time & Materials (T&M) Contract — Revenue at Contractual Labor Rates Plus Material Cost
Discussion & Community Questions
Loading comments...