Use this screen to specify the allocation of overhead on individual batches of jobs.

Costs can be allocated to the same phase that basis costs were charged to, but overhead amounts will be applied to a different cost type in that phase. These types of overhead calculations will be identified by a blank phase field; cost types can still be entered.

To fully utilize the overhead allocation feature, it is also necessary to record the batch code in the Jobs screen and perform the Overhead Allocation Update. This is followed by the Cost Transaction Report and update for entries created during the Overhead Allocation Update.

The Overhead Allocation is designed to charge admin overhead to all jobs during the year based on either the ratio of cost or billings to total costs or billings. Assign a percentage to the overhead amount you wish to allocate over the total costs or billings for the year.

Examples:

• If the overhead you wish to allocate is 25% of the total billings, then at the Type field select Percent, and at the Basis field select Billing.

• If the overhead you wish to allocate is 32% of the Labor (only) Costs, then at the Type field select Percent, and at the Basis field select Cost — with the basis phase set to only your Labor cost type.

• If the overhead you wish to allocate is 10% of all costs, then at the Type field select Percent, and at the Phase field select ALL.