Setting up DPE/overhead distribution

To set up direct personnel expense (DPE) or overhead distribution:

 

Company Preferences

  1. From the > Setup menu, click Company > Preferences.
  2. On the Payroll tab, select the DPE/overhead distribution method:
Select To

Use fixed percentages only

Distribute DPE and overhead based on fixed percentages

Distribute based on costs

Calculate DPE and overhead based on direct labor cost and distribute

Distribute based on hours

Calculate DPE and overhead based on direct labor hours and distribute

  1. Enter a percentage in the DPE field. The percentage is applied to project labor costs to reflect direct personnel expense paid on behalf of employees.
  2. Enter a percentage in the Overhead field. The percentage is applied to project labor costs to reflect general operating expenses.
  3. Select the Distribute DPE/overhead to marketing phases check box to distribute DPE and overhead costs to marketing phases using the distribution method selected in Step 2.
  4. Click Close.
  • If using fixed percentages only, your setup is complete and you can distribute DPE/overhead, as needed.
  • If using a cost- or hours-based method, go to the chart of accounts and select the DPE and overhead accounts (see below).

 

Chart of accounts

The following instructions apply only if you are distributing DPE/overhead based on costs or hours. If you are using fixed percentages only, the DPE and Overhead check boxes are unavailable.

  1. From the > Setup menu, click Company > Financials > Chart of Accounts.
  2. Click an Expense or Other Income account, and click Edit.
  3. On the General tab, select the DPE or Overhead check box to include the account in the calculation of the DPE or overhead cost.
  4. Click Save.
  5. Click the left arrow or right arrow button to navigate to the next Expense or Other Income account and repeat these steps.