Contractors that supply goods and services to the United States Department of Defense must adhere to regulations governing the way they configure and operate their accounting systems. The DCAA (Defense Contract Audit Agency) is the government agency that audits and assesses their compliance with these regulations based on the type of contract they have with the government.
A contractor is said to be “DCAA Compliant” when their accounting systems and processes comply with the regulations set out in the web site www.dcaa.mil
The following capabilities of SAP Business One and Enprise Job provide an ideal and powerful platform for configuring a DCAA compliant accounting and project costing solution;
- Proper segregation of direct costs from indirect costs
- The ability to identify and accumulate direct costs by contract
- A logical and consistent method for the allocation of indirect costs to intermediate and final cost objectives
- Accumulation of costs under general ledger control
- A timekeeping system that identifies employee’s labor by intermediate or final cost objectives
- A labor distribution system that charges direct and indirect labor to the appropriate cost objectives
- Interim determination of costs charged to a contract through routine posting to books of account.
- Exclusion from costs charged to Government contracts of amounts that are not allowable pursuant to FAR Part 31, Contract Cost Principles and Procedures, or other contract provisions
- Identification of costs by contract line item and units (as if each unit or lines was a separate contract) if required by the proposed contract
- Segregation of pre-production costs from production costs
For more specific information on Enprise Job, SAP Business One and DCAA compliance, please refer to our white paper, Enprise Job and DCAA Compliance.
Mark Loveys 
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