How to Record Unallowable Auto Lease Costs
Records the portion of executive vehicle leases that exceeds the allowable thresholds defined in FAR 31.205-6(m)(2).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Executive Compensation | Debit | 1,200.00 | - |
| Accounts Payable | Credit | - | 1,200.00 |
💡 Accountant's Note
Costs of personal use of company vehicles or lease costs exceeding reasonable business limits are unallowable and must be segregated.
Practitioner & Systems Framework
💻 ERP Architecture
Tag the vendor in the AP module to automatically route a portion of the invoice to the unallowable account code.
⚠️ Audit Flags
DCAA review of executive perquisites and vehicle lease agreements.
📄 Required Documentation
Lease agreement and the calculation of the 'personal use' component for the employee.
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