Compute Burden Costs

Use this screen to control the allocation of indirect costs to projects.

This is the final step in collecting costs that are used by the Compute Revenue process and that are printed on the Project Status Report. For cost at actual or target rates to be accurate for a project, the process normally includes the Compute/Print Pool Rates screen, the Post Pool Journals screen, and the Compute Burden Costs screen.

This process creates the PROJ_SUM and PROJ_BURD_SUM tables for a given fiscal year/period/subperiod. All processes after this point use these tables for project information. These tables must contain the most current information. We recommend that you run this process after posting all transactions.

Note: Because the base amount for any given pool is affected by the posting of service center cost and the motion of indirect cost allocations between pools, complete all three steps outlined in order for cost at target rates to be accurate.

This process uses:

• The actual, target, and cost of money rates contained on the Pool Rates subtask of the Manage Cost Pools screen.
• The override rates on the Manage Burden Cost Ceilings screen.
• The amounts posted to the GL during the posting of the Pool Journal for each account/organization combination.
• The data contained in the Rate Application table.

Costpoint derives current subperiod and period-to-date burden costs by multiplying the current subperiod and period-to-date G/L costs for all accounts in the Rate Application table by the current period rate from the Pool Rates subtask of the Manage Cost Pools screen. Costpoint derives year-to-date burden cost using one of the following methods:

• Costpoint multiplies the YTD GL costs for all accounts contained in the Rate Application table by the YTD rate from the Pool Rates subtask.
• Costpoint calculates the sum of all current subperiod burden cost for the fiscal year to date, depending on the selection in the Apply Burdening based on drop-down list on the Corporate Settings subtask of the Configure Project Settings screen.

The application uses override rates from the Manage Burden Cost Ceilings screen to replace YTD target cost. Before this process is complete, all of the direct amounts and burden amounts for each project, for both actual and target rates, are used to update the table from which the Project Status Report is printed. Therefore, the Project Status Report does not contain accurate data until this process is completed.

The Cost of Money calculation for this version does not use O/H COM (Overhead Cost of Money) in the calculation of G/A COM (General and Administrative Cost of Money).

If you choose to include projects with a billing currency that is different from the functional currency (the Billing Currency Projects check box is selected), Costpoint uses the rate date specified on this screen in determining the exchange rate to be used in computing billing currency costs. Data that populates the PROJ_SUM and PROJ_BURD_SUM tables depends on whether or not the Use Transactional Currency Billing check box in Manage Project Billing Information is selected for the project:

• If the Use Transactional Currency Billing check box is not selected, all information comes from GL_POST_SUM, which stores only functional amounts.
• If the Use Transactional Currency Billing check box is selected, all information comes from GL_DETL, which stores both functional and transactional amounts.

Complete this process after posting all transactions, computing pool rates, and posting the pool journal, and before printing the Project Status Report and computing revenue.

Note: The UI profile you are assigned may have caused some fields to be hidden on your screen. For more information, contact your system administrator.

When running this application, you may encounter an error message informing you about pools and rates that create an arithmetic overflow error. To identify records that may cause this type of error, Costpoint looks at the current period (Pd Actual) and year-to-date (YTD Actual) rate values on the Pool Rates subtask of the Manage Cost Pools screen.

A sample error message looks like this:

The pools listed below have rates that create an arithmetic overflow error. Please correct these issues or do not run these specific pools:

Pool: 1, Current Period Rate: 9.99999999, YTD Rate: -9.99999999

Pool: 5, Current Period Rate: 9.99111111, YTD Rate: -9.99111111

To resolve this issue, see Fix the Pool Rates and Re-run Compute Burden Costs.