Overhead Cost Calculation and Allocation
Construction overhead costs such as job management, general business cost, or construction site setup are often calculated on a different basis and need to be allocated to the sales positions. Functions for overhead cost calculation and allocation are described in the following sections.
Job-specific Charges
In the Job Charges page, accessed on the Calculation menu of the Job Card, define overhead costs percentages to be included in the Extra Charge % in the BoQ Budget Calculation.
The fields that are used with overhead cost calculation are described in the following table.
| Field | Description |
|---|---|
| Gen. Bus. Exp. % | Indicates any general business expense percentage to be included in the Extra Charge percentage. |
| COH % | Indicates the construction overhead percentage to be included in the Extra Charge percentage. |
| Risk % | Indicates the percentage of risk to be included in the Extra Charge percentage. |
| Gain % | Indicates the percentage of gain to be included in the Extra Charge percentage. |
The total percentage of these fields is calculated in the Extra Charge % field.
Formula: Extra Charge % = Gen. Bus. Exp. % + COH % + Risk % + Gain %
Job-specific Charges can be entered manually in the top section of the page. Default Job Charges (from base setup) are displayed in the Default Charges section to provide an immediate reference to the standard charges. The default charges can also be viewed in a separate page by choosing the Default Charges action on the action bar. It is not possible to make changes to the default Job Charges in either view.
It is also possible to copy the default Job Charges to Job-specific Charges.
Choose the Copy Default Charges action to copy all default charges to the Job-specific charges. A message may open to confirm the deletion/replacement of existing entries with standard charges.
Choose the Yes button to replace existing charges with default charges, or the No button to cancel the copy process.
Now the Job Charges can be modified specifically for this job. Once changes are made, select the line to update and then choose the Update Calculation action to update the extra charges in the BoQ Budget Calculation.
Construction Overhead Apportionment
The Construction Overhead (COH) Apportionment distributes the construction costs to the BoQ positions, based on cost types.
The COH Apportionment-related fields that have been added in the BoQ Budget Calculation page are described in the following table.
| Field | Description |
|---|---|
| COH Apportionment | Indicates the line with construction costs to be distributed to the BoQ positions. The line marked as COH Apportionment must meet the following conditions: - related sales budget calculated fields (such as Total Price Budget) and Sales Code must be <Blank> - related Job Charge must be -100% Therefore, these fields are set appropriately when then COH Apportionment checkbox is selected. NOTE: The COH Apportionment field has been added to the following pages for default to the BoQ Budget Calculation: - General Component Card, Calculation FastTab - Fixed Job Lines Budget |
| COH Apportionment (LCY) | Displays the COH apportionment value that was distributed to the BoQ positions, in local currency. |
| COH (LCY) | Displays the COH distribution in local currency. Formula: COH Apportionment (LCY) * COH % / 100 |
| COH % | Displays the COH distribution percentage from the Job Charges. |
On the Actions menu, choose BoQ > COH Apportionment to open the Apportionment Distribution page, where the distributions are entered per cost type.
The fields in the Apportionment Distribution page are described in the following table.
| Field | Description |
|---|---|
| Job No. | Displays the job number of the BoQ Budget Calculation for the COH Apportionment. |
| Cost Type | Indicates the cost type for which the COH Apportionment is to be distributed. |
| Distribution % | Indicates the overhead percentage to be distributed to the cost type. The distribution of all cost types must equal 100%. |
| COH (LCY) | Displays the calculation of the overhead costs in local currency per cost type. Formula: Distribution % * Total Cost Budget (LCY) of COH Apportionment / 100 |
| BGK % | Displays the calculation of the overhead costs. Formula: COH (LCY) / Total Cost Budget (LCY) * 100 |
| Total Cost Budget (LCY) | Displays the complete cost from the BoQ Budget Calculation per cost type. |
Choose the Distribute Construction Overhead Costs action to begin the distribution process. A message opens confirming the COH distribution.
This function transfers the value in the BGK % field from the Apportionment Distribution page to the COH % field in the Job Charges and then updates the Extra Charge % in the BoQ Budget Calculation positions based on the calculated Extra Charge % in the Job Charges.
The COH (LCY) and COH % fields are updated on the BoQ positions, indicating the distributed construction overhead costs. The COH Apportionment (LCY) field on the COH Apportionment line shows the complete value that was distributed to the BoQ positions.
Calculation Statistics
In the Calculation Statistics page, the COH Apportionment value is visible in the Total and Total (Preview) FastTabs.
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