Do you want to apply an overhead on a job type?
Organization
An overhead is the cost related to providing and maintaining a working environment. For example, renting a building, heating and lighting the work area. You can set up an unlimited number of overheads in the Overhead table. When an overhead is updated to the Caselle General Ledger or Project Accounting, the system will search through all of the overhead records for overheads that apply to the transactions that are being updated. The system calculates the overhead amount based on the transaction's issue type. Then the overhead amount that was calculated is also posted to the General Ledger or Project Accounting as a separate transaction.
Example 1
Company X has two overheads. The first overhead is for the cost of maintaining an Inventory Clerk. The second overhead is for the cost of maintaining minor materials.
Inventory Clerk Overhead: 10% of the account, 5% of the sale
Minor Materials Overhead: 5% of the account, 2% of the sale
Scenario 1: One thousand dollars of minor materials is issued. When the $1000 transaction is updated to the Caselle General Ledger or Project Management, the system will apply a 15% overhead.
10% for the Inventory Clerk Overhead + 5% for the Minor Materials Overhead = 15%
Two separate transactions are posted to the General Ledger and Project Management. (1) a transaction for $1000 of minor materials and (2) a transaction for $150 to cover the overhead.
Example 2
A $1,500 desk is sold. When the $1,500 transaction is updated the system will search for the overheads that apply to the Sale type transaction. Since the desk is not a minor material the only overhead that will calculate is the 5% for the Inventory Clerk.
5% for the Inventory Clerk Overhead
Here are the transactions that will be posted to the General Ledger and Project Accounting: (1) a transaction for $1,500 which is the cost of the desk and (2) a transaction for $75 which covers the Inventory Clerk Sales Overhead ( $1,500 x 5% = $75)
Setting up a job type to apply an overhead
1. Open Connect Project Accounting > Organization > Organization.
2. Click to select the Job Types tab.
3. Click to select a job type.
4. Click to select the checkbox titled Apply Overhead.
5. Click Save (CTRL+S).
Connect will apply the overhead to transactions that are assigned to the job type.
Why can't I select the Apply Overhead checkbox?
Project Accounting can apply an overhead created in Materials Management or Timekeeping. If the Apply Overhead checkbox isn't available to select, check if these items are set up:
If you want to apply a materials overhead, you will need to turn on the interface to Materials Management in Project Accounting and set up an overhead in Materials Management.
If you want to apply a timekeeping overhead, you will need to set up an overhead in Timekeeping.