Overhead Tab of Individual Organization Setup (Browser)

If you allocate overhead across organizations, use the Overhead tab to enter overhead information for each of your organizations.

You must enter overhead information for both non-operating organizations (organizations with no revenue-producing projects) and operating organizations (organizations with revenue-producing projects).

• A non-operating organization distributes to operating organizations the overhead expenses from its organization plus any overhead amount it receives from other non-operating organizations.
• An operating organization allocates overhead amounts that it receives from non-operating organizations to its revenue-producing projects. Operating organizations do not distribute overhead to other operating or non-operating organizations.

This tab displays only if Scope is set to Organization on the General tab of the Overhead Allocation Configuration form (in the desktop application in Settings > Accounting > Overhead Allocation).

Contents

Distribution to Operating Organizations

Field	Description
Distribution to Operating Organizations	Select this option if this is a non-operating organization that will distribute its indirect costs to other non-operating and/or operating organizations. When you select this option, the title above the Method field changes to Distribution Information to indicate that the non-operating organization's overhead amounts are distributed to other organizations. Leave this option cleared if this is an operating organization. Operating organizations receive overhead amounts from other non-operating organizations and then allocate the overhead amounts among its revenue-producing projects. When you leave this option cleared, the title above the Method field changes to "Allocation Information" to indicate that the operating organization allocates the overhead it receives from non-operating organizations to its revenue-producing projects.
Distribution Target	Specify the organization that will receive the overhead. To enter multiple organizations, you can enter wildcards in this field.
Distribution Pass	Enter the pass on which the overhead allocation should distribute the overhead from the non-operating organization to other organizations. Valid entries are 1, 2, 3, or 4.

Allocation Information

Field	Description
Method	Select the method by which to allocate overhead. Options are: Assign: If you select this method, you supply the overhead rate, which Vantagepoint multiplies by a base to yield the amount of overhead that will be allocated. Prorata: If you select this method, Vantagepoint calculates the overhead rate by dividing the total overhead expenses, from the Income Statement, by a base for each project to yield the amount of overhead that will be allocated. None: If you do not want to allocate overhead at this point, enter None as the Method.
Basis	Select the basis for which to calculate overhead allocation. Options are: Direct Labor: This option includes both regular and overtime labor costs. Revenue: This option includes total project revenue. Total Labor: This option includes both regular and overtime labor costs. Total Costs: This option includes both regular and overtime labor, and direct and indirect expenses. When you select the Distribute to Operating Organizations option on this tab, all four options display in the drop-down list in the Basis field. When you do not select this option, you can choose only Direct Labor or Revenue in the Basis field.
Overhead Rate	Enter the overhead rate to apply to this organization.
Variance Project, Phase, Task	Enter the project, phase, or task to store the difference between the computed amount and the actual amount of overhead distributed. Vantagepoint applies an amount to this project, phase, or task if you use the Assign method. You must enter a project, phase, or task number if you allocate overhead on an organization basis, regardless of the method. The prorated method may result in rounding differences that display in this project, phase, or task.