How to Record Relocation Cost Accruals
Accruing for employee relocation expenses permitted under FAR 31.205-35 for personnel assigned to a government contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Employee Relocation Expense | Expense | 15,000.00 | - |
| Accrued Relocation Liability | Liability | - | 15,000.00 |
💡 Accountant's Note
Relocation costs are allowable within specific limits (e.g., maximum travel days, weight limits for goods). This entry records the estimated liability when the relocation is authorized.
Practitioner & Systems Framework
💻 ERP Architecture
Track by individual employee ID to monitor against the 12-month employment requirement (payback clause).
⚠️ Audit Flags
Relocation costs exceeding the statutory or regulatory ceilings or missing 'payback' agreements.
📄 Required Documentation
Relocation authorization forms, signed employee payback agreements, and moving company quotes.
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Discussion & Community Questions
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