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Slide1
Overhead Allocation
Presented by Melissa WoodSlide2
Welcome
If you are applying for CPE credit, please be sure to
sign in and sign out
.
Please write legibly!
Additionally, fill out the survey for a chance to win a free pass to the
2017
User Conference!Slide3
Presentation Contents
Inset your subtitle here. This is a good space for a short subtitle
1
Using Actual Burden
Who we Are?
Mission & Vision
Our Business Objectives
Our Business Plans
Marketing Plans
Analytics
Remained Subjects
2
3
4
5
6
7
8Slide4
Choosing a Method
Using Actual BurdenUsing Actual Burden with Extra Burden
General Ledger Method
Job Costing Method
Combination of MethodsSlide5
What is Actual Labor Burden
Employer Share of FICA
Federal and State Unemployment
Workers' Compensation
Employer-Paid Benefits
from
Unions
Accrued
Fringe Benefits
(Heath & 401K) Contributions Slide6
Items Considered Extra Burden
Fuel
General Liability Insurance
Vehicle Insurance
and
Maintenance Costs
Licenses and Registration
Blueprints
and
Estimating Costs
Tools
and
Small Equipment
Drug
and
Background Check Fees
Shop Costs
Field Phones
and
Mobile DevicesSlide7
Burden Analysis
Review Current Actual Burden Setup
Set Extra Burden G/L
Accounts to Indirect Expenses
Analyze your Income Statement for Extra Burden %
Adding new
G/L
Accounts to Track Extra Burden
Setting your Extra Burden Sequence (
P/R
Depts
)
Selecting Earn
Codes on which
to Calculate
Burden
Adding Higher Burden to More Costly Jobs
Execute When Posting Payroll
Over/Under Burdening Spot CheckSlide8
This company has under –burdened by about 15% of laborSlide9
General Ledger Method
Conceptually Similar to the Extra Burden MethodSetup is in the
G/L Rather than Payroll
Great Solution if You are Not Using Payroll Module
Setup in General Chart of Accounts
Consider Basis, % to Allocate and Weight Factor
Make sure
G/L
Control Files are
Set Up
Executing Using the Overhead Allocation Report
Con – Does
Not Work
with Divisions
Con – You
Need
to
Remember
to Post itSlide10
Job Cost Method
Conceptually Similar to the Other MethodsSetup is in the Job Cost Control
File
Basis is by Cost Code or Cost Class
Allocation
by
Amount Per Hour or %
Make
Sure
J/C Control Files are
Set Up
Execute Using the J/C Overhead Allocation Report
Use Caution to Keep G/L & Job Cost in Balance
Con – You
Need
to
Remember
to
Post ItSlide11
Thanks for
Attending
www.foundationsoft.com
mwood@foundationsoft.com
Overhead Allocation