532.7204 Suspension and disapproval of amounts claimed.
(a) The contracting officer shall notify the appropriate contract finance office in writing when amounts claimed for payment are—
(2) Disapproved as not being allowable according to contract terms; or
(3) Not allocable to the contract.
(b) The contracting officer’s notice forms the basis for the contract finance office to issue GSA Form 533-1, Administrative Difference Statement. Finance will attach a copy of GSA Form 533-1 to each copy of the invoice or voucher from which the deduction has been made, and will include an explanation of the deduction.