AXIS Diplomat 2006 Job Costing Options

Automatic Overhead Calculation

This option provides facilities to automatically uplift direct costs by a selected percentage in order to take into account the overhead costs associated with those direct costs.

For some companies the inclusion of an overhead percentage, where appropriate, may achieve a truer reflection of the costs of a job.

The user must be able to determine the percentage to apply to each operation and expenditure type for this feature to be useful.

Setting Overhead Percentages

The overhead percentage is set against the operation and expenditure codes, so a separate code will be required for each overhead percentage to be applied. Operation codes are for labour bookings and expenditure codes for non-labour bookings. The percentage may vary from 0.00% to 9999.99%.

Calculation

The overhead percentage is applied to a cost when it is booked into the system, uplifting the direct cost by the appropriate percentage. The calculated overhead is stored on the booking record, so that the total cost may be split between direct cost and overhead. When automatically valuing work-in-progress for the balance sheet (see Sales Invoice Production) only the direct cost is used.

Overhead Value Adjustment

Because the overhead is calculated at booking time, any amendment to the overhead percentages set against the operation and expenditure codes will not affect costs already booked. However existing calculated overhead values for booked costs may be adjusted at any time using the Overhead Value Adjustment function supplied with this feature.

The booked costs may be adjusted by a positive or negative percentage which may be applied to the costs for specified job numbers, contract numbers, operation codes, expenditure codes and/or booking dates. Costs already transferred to Cost of Sales (i.e. invoiced) may also be included if required.

Override By Job

The Overhead Rate Override by Job feature allows an overhead percentage to be set against individual jobs. For jobs where an overhead percentage is set, this percentage will be used for overhead calculation in place of the percentage set against the operation/expenditure code for each cost.

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