How to Record Special Tooling Costs
Accounting for the acquisition of special tooling required for specific contract performance where title vests with the government.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Special Tooling Inventory | Asset | 22,000.00 | - |
| Accounts Payable | Liability | - | 22,000.00 |
💡 Accountant's Note
Special tooling is often capitalized separately from general equipment because it is contract-specific and subject to government title or disposal instructions.
Practitioner & Systems Framework
💻 ERP Architecture
Use the Fixed Asset module with a unique category code for Government-Owned/Contractor-Acquired Property.
⚠️ Audit Flags
Failure to distinguish between contractor-owned and government-titled tooling.
📄 Required Documentation
Purchase order, DD Form 1149, and Special Tooling clause FAR 52.245-1.
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Discussion & Community Questions
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