Burden Structures
You define the cost buildup using a burden structure. A burden structure determines how cost bases are grouped and establishes the method of applying burden costs to raw costs. Expenditure types classify raw costs, and burden cost codes classify burden costs. The relationship between expenditure types and burden cost codes within cost bases determines what burden costs are applied to specific raw costs, and the order in which they are applied.
Notes:
To account for burden cost codes separately, you also define unique expenditure types to link to burden cost codes
1. One expenditure type can be associated with only one cost base in a burden schedule
2. When you make an expense, system checks if the project allows burdening. The burden schedule/structure is picked from the project/type. System checks the expenditure type in the structure and finds out the corresponding cost base. The cost base defines the burden charges applied to the expenditure type.
3. The burden schedule determines the multiplier for each burden cost code in an organization. To define a burden structure:
Navigate to the Burden Structures window.
1. Enter the Header Information
Enter a unique name and description for the burden structure.
Select Additive if you want to apply each burden cost code assigned to a cost base using the same precedence when calculating burden costs. Additive schedules automatically provide a default value of 1 to each burden cost code in the structure. Select Precedence if you want to specify the order in which each burden cost code in a cost base should be applied to raw costs.
Select Allowed if users can use this burden structure when defining a burden schedule override for a project or task. Select Default if you want this burden structure to appear as the default structure for burden schedule overrides for projects and tasks. You can only select one default structure for burden schedule overrides.
2. Cost Base Assignment
Enter the names of the cost bases included in this burden structure.
If you need to define additional cost bases, choose the Cost Bases button.
Suggestion: After you enter a cost base, we recommend that you enter all of the associated expenditure types and burden cost codes for the cost base before you enter the next cost base.
3. Burden Cost Codes
Enter the burden cost codes associated with a particular cost base. If you are using a precedence based structure, enter the precedence in which you want to apply each burden cost code to raw costs within the cost base.
If you need to define a new burden cost code, choose the New Burden Cost Codes button.
4. Expenditure Types
Enter the expenditure types associated with a particular cost base. Expenditure types represent the types of raw costs within a cost base.
- Each expenditure type can belong to only one cost base having a type of Burden Cost within each burden structure so that transactions of that expenditure type are not burdened more than once.
- If you do not assign an expenditure type to a cost base, transactions using that expenditure type are not burdened. The burdened cost for these transactions equals the raw cost of the transaction.
Your company may have several different burden structures for unique business requirements. For example, you may use a different structure for internal costing than you use for government billing.
• The Labor cost base: includes the expenditure types Professional, Clerical, and Administrative.is assigned the burden cost codes Fringe, Overhead, and General and Administrative (G&A).
• The Material cost base: includes the expenditure types Supplies and Construction Materials. is assigned the burden cost codes Material Handling and General and Administrative (G&A).
• The Expense cost base: includes the expenditure types Travel and Meals. is assigned the burden cost code General and Administrative (G&A).
Comments
Post new comment