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Fremont generally consolidates a variety of administrative labor hours in one indirect project; occasionally, however, Fremont creates a distinct administrative work project to record hours spent on specific efforts. For example, Fremont created an indirect project to record hours spent on implementing Oracle Applications.

Members of Fremont's administrative support staff submit weekly timecards showing hours to be charged to the indirect project for administrative work. In addition, project managers periodically charge hours to this project for the time they spend writing semiannual performance reviews and performing other administrative tasks.

Fremont uses the resulting project information, together with a summary of other expenses such as rent, insurance, and cost of capital, to periodically review its bill rates and markups to ensure that the company is recovering the cost of labor.

Fremont uses the Projects window to enter the following administrative work project.
Project
Number	Admin
Name	Administrative Work
Description	This project is used to record general administrative work. All costs are charged to the cost center of the employee performing the work.
Organization	Finance
Status	Permanent
Public Sector	No
Type	Overhead

Define administration tasks

Task
Task Number	Admin
Task Name	Administrative Work
Description	This task holds general administrative labor
Organization	Finance
Service Type	Administration

Fremont implemented AutoAccounting to use the Administration service type to charge administrative labor to the appropriate expense account.

See Also