How to Record QASP Financial Penalties
How to account for financial deductions or penalties assessed by the government for failing to meet Quality Assurance Surveillance Plan (QASP) standards.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Costs - Penalties | Debit | 5,000.00 | - |
| Accounts Receivable - Gov Contract | Credit | - | 5,000.00 |
💡 Accountant's Note
When a government agency assesses a financial penalty for performance failures under a QASP, the amount is recorded as an unallowable cost (per FAR 31.205-15) and reduces the collectible receivable balance.
Practitioner & Systems Framework
💻 ERP Architecture
Apply as a credit memo against the specific invoice where the penalty was assessed; map to unallowable GL code.
⚠️ Audit Flags
Revenue reconciliations vs. QASP performance reports; DCAA review of unallowable accounts.
📄 Required Documentation
QASP assessment report, Contracting Officer's notice of penalty, and revised invoice.
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