How to Record TINA Price Reductions
Adjusting contract revenue and establishing a liability for defective pricing discovered under the Truth in Negotiations Act (TINA).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Revenue | Revenue | 120,000.00 | - |
| Liability for Defective Pricing | Liability | - | 120,000.00 |
💡 Accountant's Note
When an audit reveals that certified cost or pricing data was inaccurate, incomplete, or non-current, the contract price is reduced, necessitating a reversal of revenue.
Practitioner & Systems Framework
💻 ERP Architecture
Adjust contract value in the project billing module to prevent over-invoicing.
⚠️ Audit Flags
DCAA post-award audit findings of defective pricing.
📄 Required Documentation
DCAA audit report, contracting officer's final decision, and revised price proposal.
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Expert Analysis by Qusai Ahmad
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Discussion & Community Questions
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