How to Record Unallowable PR Costs
Segregating public relations and advertising costs that do not meet the criteria for allowability under FAR.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Expense - PR/Advertising | Expense | 4,200.00 | - |
| Accounts Payable | Liability | - | 4,200.00 |
💡 Accountant's Note
FAR 31.205-1 strictly limits the types of PR and advertising costs that can be charged to the government. Costs for general 'image' building or promoting products are unallowable and must be excluded from indirect pools.
Practitioner & Systems Framework
💻 ERP Architecture
Map specific GL accounts to an 'Unallowable' category to ensure exclusion from the G&A pool calculation.
⚠️ Audit Flags
Review of marketing department invoices and trade show participation details.
📄 Required Documentation
Invoices and copies of the promotional materials/advertisements for content review.
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