How to Record Unallowable Membership Dues
Capturing membership costs for organizations where a portion of the dues is used for lobbying or other unallowable activities under FAR 31.205-22.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Costs - Lobbying Dues | Debit | 1,200.00 | - |
| Cash | Credit | - | 1,200.00 |
💡 Accountant's Note
Dues paid to professional or trade organizations that are primarily engaged in lobbying must be recorded in an unallowable account to ensure they are excluded from the indirect rate calculation.
Practitioner & Systems Framework
💻 ERP Architecture
Use a unique GL account suffix (e.g., -999) to flag unallowable costs.
⚠️ Audit Flags
DCAA review of trade association invoices and lobbying percentage declarations.
📄 Required Documentation
Association invoice showing the percentage of dues used for lobbying.
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