Defense, Aerospace & Government Contracting

How to Record Unallowable Meeting Food

Records food and beverage costs for business meetings that do not meet the criteria for allowability under FAR 31.205-43.

Account NameTypeDebit ($)Credit ($)
Unallowable T&E - Food and BeverageExpense450.00-
Accounts PayableLiability-450.00

💡 Accountant's Note

Under FAR 31.205-43, costs for meetings and conferences are generally allowable, but food and beverages provided at internal or routine business meetings are frequently deemed unallowable and must be segregated.

Practitioner & Systems Framework

💻 ERP Architecture

Use a specific 'Unallowable' natural account code (9xxx series) that is excluded from the indirect rate calculation.

⚠️ Audit Flags

Excessive food charges in overhead or travel expense reports identified during DCAA vouchers reviews.

📄 Required Documentation

Meeting agenda, attendee list, and original receipt showing the nature of the meal.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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