For many government contractors, the annual Incurred Cost Submission (ICS) is a season of dread. It often involves weeks of manual data extraction, complex spreadsheet calculations to determine actual indirect rates, and the high-stakes pressure of meeting DCAA's reporting requirements.
XTIVIA GovCon365, built on Microsoft Dynamics 365 Business Central, transforms the ICS from a manual ordeal into a streamlined output of your daily accounting processes. By capturing the right data at the moment of entry, GovCon365 ensures you are always ICS-ready.
The ICS Blueprint: Data Already in Your ERP
The DCAA requires the ICS to prove that your actual indirect rates match what you billed the government. GovCon365 automates the core components required for these complex schedules.
1. Automated Actual Rate Calculations
Manual calculation of actual overhead and G&A rates is the primary cause of ICS errors. GovCon365’s Cost Allocation engine calculates your Actual Rates every time you run your monthly periodic activities. This means when it's time to prepare your submission, the math is already done and verified against your General Ledger.
2. DCAA-Compliant Labor Distribution
Schedule L of the ICS requires a complete reconciliation of your labor. GovCon365 provides dedicated Labor Analysis and Timesheet History reports that sort direct and indirect hours by employee and pay type. The manual even notes that DCAA specifically requests these reports to verify labor distribution accuracy.
3. Instant Job Costing for Schedules H & I
Schedules H and I require a detailed breakdown of costs incurred for every cost-plus contract. Because GovCon365 accumulates all labor, expenses, and burdens at the Job and Task level, you can generate Job Detail with Billing reports that populate these schedules with audit-trail precision.
Identifying Unallowables Automatically
A major risk during an ICS audit is the accidental inclusion of unallowable costs in your overhead pools. GovCon365 provides an Un-Allowable Job Category that tracks these costs in the General Ledger but prevents them from being allocated to contracts or included in your billable rate pools. This "set it and forget it" control is a lifesaver during a DCAA review.
Continuous Compliance
The secret to a stress-free ICS isn't a better spreadsheet; it's a better system. By utilizing the automated indirect cost engine and specialized reporting within Business Central and XTIVIA GovCon365, your firm moves away from annual data "scavenger hunts" and toward a model of continuous, audit-ready compliance.
