# How to Prepare an Incurred Cost Submission From Costpoint > Source: https://netray.co/erp-help/costpoint-incurred-cost-submission-ics-prep > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer An incurred cost submission is built from closed-year, reconciled Costpoint data: final direct cost by contract, pool and base amounts, and final indirect rates. Close the fiscal year, freeze the cost data, reconcile pools and bases to the general ledger, then map the results into the government's Incurred Cost Electronic (ICE) model schedules before the deadline. ## Kind how-to ## System small-erp ## Erp Deltek Costpoint ## Module Government Contracting / Indirect Rates ## Query how to prepare incurred cost submission from Costpoint ## Alternate Queries - Costpoint incurred cost submission schedules - DCAA incurred cost electronic ICE model Costpoint data - Costpoint final indirect rates incurred cost proposal - Costpoint reports for ICS FAR 52.216-7 ## Applies To Deltek Costpoint 7.x and cloud, for contractors subject to FAR 52.216-7 on flexibly priced contracts (cost-reimbursement, time-and-materials, labor-hour). Confirm requirements with your contracting officer and counsel. ## Steps ### Preparing the submission data **Items:** - Note the deadline: under FAR 52.216-7 the proposal is generally due six months after the end of the fiscal year. Work backward from that date. - Close the accounting periods for the fiscal year and make sure all late timesheets, vendor invoices, accruals and adjustments are posted. Do not start the schedules while the year is still moving. - Run the final indirect cost allocation for each period so pool costs and allocation bases reflect actual, not provisional, amounts. Compute the final annual rate for each pool. - Reconcile each pool and base to the general ledger. Total pool cost plus allocated costs should tie to the ledger; a break here will surface in any audit. - Extract cost by contract and cost element: direct labor, direct material, subcontracts, ODCs, travel and the indirect burdens applied. Include flexibly priced and fixed-price contracts in the allocation base as required by the schedules. - Separate and review unallowable costs, including those in FAR 31.205, and confirm expressly unallowable amounts are excluded from pools. - Map the Costpoint output into the ICE model schedules, review the model's own error checks, and have finance and contracts sign off. - Archive the supporting reports and the rate computation so you can answer auditor questions months later. ## Sections ### Where the numbers come from in Costpoint **Body:** Costpoint is the system of record for three things the submission needs. First, the cost ledger by project and account, which gives you direct costs by contract. Second, the indirect pool structure (for example fringe, overhead and G&A) with pools and allocation bases defined in your indirect structure. Third, the rate and billing history, which tells you which provisional rates were used to bill during the year. Your submission reports final rates that will usually differ from provisional billing rates. The difference between what you billed at provisional rates and what final rates allow is the true-up, and it flows into the cumulative allowable cost schedules. Keep a clean record of provisional rates by period for that reason. ### Reconciliation is the real work **Body:** Most of the effort in an ICS is not the schedules, it is proving the numbers tie. A practical approach is to build a reconciliation workbook with one tab per pool: total costs from the ledger, less items moved or excluded, equals the pool in the rate computation. Do the same for each base. Differences should be explained by named adjusting entries. Pay special attention to the cutover points: costs posted after year end but belonging to the year, intercompany or reclassification entries, and any pool or base restructuring during the year. If your structure changed, you may need to present both periods consistently or disclose the change in your cost accounting practices. **Code:** Reconciliation checklist (per pool) Ledger total for pool accounts, FY - unallowable costs removed (FAR 31.205) +/- reclassifications and adjustments (named) = pool cost in rate calculation Base total from ledger / allocation, FY = base in rate calculation Final rate = pool / base Compare to provisional rate used in billing ### Mapping to the ICE model **Body:** The government's ICE model is a spreadsheet with a set of schedules covering items such as indirect rate computation, direct costs by contract, and cumulative costs. It is not an import file from Costpoint. Plan on a repeatable extract: saved Costpoint reports or queries that produce the exact columns you need, then a controlled process to paste or load them. Keep the extract the same every year. A stable, documented query set means the person who did it last year does not need to be the person who does it this year, and reviewers can compare years quickly. Before you finalize, run the model's validation, then recheck totals against your reconciliation workbook. ## Pitfalls - Starting before the year is truly closed, which forces the schedules to be rebuilt after late entries. - Including expressly unallowable costs in a pool, which can carry penalties and damage credibility with the auditor. - Using provisional rates where final rates are required, so the true-up is never computed. - Failing to tie pools and bases to the ledger and discovering the break during audit. - Not keeping the extract logic documented, so each year is rebuilt from memory. - Treating the ICE model as a Costpoint report. It is a separate deliverable that needs mapping and review. ## Ai Angle The recurring pain is the reconciliation, not the arithmetic. An assistant grounded in your Costpoint data can run the pool and base tie-outs on demand, point at the accounts that differ from the prior year, and list the entries posted after period close. It produces the saved queries and shows each one before running. Draft analysis stays read-only; the controller approves anything that is posted. ## Faq ### When is the incurred cost submission due? **Answer:** Under FAR 52.216-7, contractors generally submit the final indirect cost rate proposal within six months after the end of their fiscal year. Your contract may modify this, so confirm with your contracting officer and keep your own calendar with a margin for review. ### Does Costpoint produce the ICE model automatically? **Answer:** Costpoint holds and reports the data, but the ICE model is a separate government spreadsheet. Most teams build saved reports or queries that mirror the schedule layouts and load them into the model, then review the output against their own reconciliations. ### What if my indirect structure changed during the year? **Answer:** Document the change, compute rates consistently for each affected period, and check whether it needs disclosure as a change in cost accounting practice. Do this with your accountants early, because it affects how bases and pools are presented across schedules. ### Do small contractors need to do this every year? **Answer:** It applies to contractors with flexibly priced contracts, and there are streamlined provisions for small businesses. Whether you must file depends on your contracts, so ask your contracting officer or advisor rather than assuming. ## Search terms costpoint incurred cost submission, incurred cost proposal costpoint, ICE model costpoint, FAR 52.216-7 final indirect rates, DCAA incurred cost schedules, costpoint final indirect rate calculation, costpoint unallowable costs, costpoint year end indirect reconciliation --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json