How to Record Subcontractor Flow-down Training
Captures the costs of training subcontractors on mandatory FAR/DFARS flow-down requirements, such as Small Business Subcontracting or Ethics programs.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Overhead - Subcontract Management | Expense | 8,500.00 | - |
| Cash / Accounts Payable | Asset/Liability | - | 8,500.00 |
💡 Accountant's Note
Prime contractors have a duty to ensure subcontractors comply with flow-down clauses. The cost of providing this training is an allowable indirect cost related to contract administration.
Practitioner & Systems Framework
💻 ERP Architecture
Capture labor for internal trainers using a specific indirect project code for 'Subcontractor Oversight'.
⚠️ Audit Flags
Unusually high training costs per subcontractor compared to industry standards.
📄 Required Documentation
Training syllabus, attendee list from subcontractor, and proof of flow-down requirement in the subcontract agreement.
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