How to Record STE Salvage Value
Records the proceeds from the sale of Special Test Equipment (STE) no longer required for government contract performance.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset | 2,000.00 | - |
| Cost of Goods Sold (Credit to Contract) | Expense | - | 2,000.00 |
💡 Accountant's Note
Per FAR 52.245-1, credits from the sale of scrap or salvageable material must be credited back to the contract that bore the original cost of the equipment.
Practitioner & Systems Framework
💻 ERP Architecture
Credit the specific project/WBS where the STE was originally charged to ensure proper cost recovery for the government.
⚠️ Audit Flags
Retaining proceeds from the sale of equipment originally funded by the government as direct costs.
📄 Required Documentation
Bill of sale, disposal authorization from the Plant Clearance Officer (PLCO), and original acquisition records.
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