Indirect rate calculations require additional calculations outside quickbooks. Indirect rates are calculated in the DCRS add-on program. The ability for DCRS to properly calculate indirect rates can make your Quickbooks Accounting System DCAA Compliant.
In order for your accounting system to be DCAA Compliant a DCAA Auditor will conduct an Accounting System Review using a Standard Form 1408, Preaward survey of prospective contrator accounting system. On this form the DCAA auditor evalutates the accounting system for the following:
a. Proper segregation of direct costs from indrect costs.
This segregation can happen in quickbooks using a DCAA Compliant Chart of Accounts
b. Identification and accumulation of direct costs by contract.
Properly setting up jobs within Quickbooks can satisfy this condition. For more information on QuickBooks data conversion complete the contact us form on this page.
c. A logical and consistent method for allocation of costs.
The DCRS tool allows QuickBooks users to meet this condition. This service is also provided by BTC.
d. Accumlation of cost under general ledger control.
DCAA Compliant chart of accounts with Quickbooks meet this requirement.
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f. A labor distribution system that charges direct and inderect labor to the appropriate cost objectives.
DCRS distributes labor properly.
g. Interim (at least monthly) determination of costs charged to a contract through routine posting of books to account.
With the DCRS tool QuickBooks users are able to post books and reconcile accounts.
h. Exclusion of unallowable costs.
The DCAA compliant chart of accounts allows for the tracking of unallowable costs.
i. Indentification of costs by contract line item and by units.
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j. Segregation of preproduction costs from production costs.
Proper use of DCRS and QuickBooks can meet this requirement.