Enterprise-wide Overhead Allocation

If you are not using the Organization Reporting feature, Deltek automatically allocates overhead on an enterprise-wide basis. Likewise, if you are using Organization Reporting, you have the option of allocating overhead on an enterprise-wide basis, essentially treating the entire enterprise as one organization.

To set up enterprise-wide overhead allocation, choose assignment or proration as the allocation method, choose labor or revenue as the allocation base, and set up an Overhead Variance project (if using the assignment method) to store any difference between actual and applied overhead. Enter this information in Settings > Advanced Accounting > Overhead Allocation.

When you use the assignment method, you define the enterprise-wide overhead rate.

When you use the proration method, Deltek calculates the enterprise-wide overhead rate based on actual activity:

Enterprise-wide Overhead Rate (Proration Method) = Year-to-date Indirect Expenses / Year-to-Date Direct Labor or Revenue

Actual Overhead

When Deltek calculates actual overhead, it uses one of the following formulas:

Overhead	Formula
Overhead by Project	Enterprise-wide Overhead Rate * Year-to-Date Base by Project = Overhead Allocated to Project
Overhead from Non-operating Organizations	Enterprise-wid Overhead Rate * Year-to-Date Base for Organization = Overhead for Organization