How to Record Quick-Closeout Adjustments
Records the final adjustment of indirect costs to negotiated rates under the FAR 42.708 Quick-Closeout procedure.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Indirect Rate Variance (Applied) | Expense | 12,400.00 | - |
| Accrued Contract Revenue | Asset | - | 12,400.00 |
💡 Accountant's Note
Adjusts the difference between provisional billing rates and the final negotiated rates agreed upon during the quick-closeout process for a specific contract prior to the finalization of company-wide overhead rates.
Practitioner & Systems Framework
💻 ERP Architecture
Use a manual journal entry to adjust project-level revenue if the system cannot auto-calculate quick-closeout rates.
⚠️ Audit Flags
Significant variances between negotiated quick-closeout rates and actual incurred rates.
📄 Required Documentation
Signed Quick-Closeout Agreement, FAR 42.708 justification.
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Discussion & Community Questions
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