Understanding Burdening Setup

Burdening is the process of applying costs to the direct cost (raw cost) of doing business. Applied burdens include costs such as:

• Fringe

• Overhead

• Materials and handling

• General and administrative (G & A)

Using transactions in the General Ledger table (F0911), such as time cards and vouchers, the Create Burdening Transactions program (R52G11) uses the amounts, which are considered the raw costs, on these records and then applies burdening rates to them.

To set up burdening, you first set up the burdening constants in the Billing Constants program (P48091). Then you complete these setup tasks:

• Set up ranges of PLxx automatic accounting instructions (AAIs).

  AAI items PLxx define ranges of accounts to include when you run the Create Burdening Transactions program (R52G11).

  See "Setting Up Automatic Accounting Instructions, Understanding AAIs" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.

• Set up user-defined code (UDC) table 52G/BL.

  This UDC table contains the ledger types of transactions to include when you run the R52G11 program.

Finally, you set up segment definitions, burden computation methods, burden base rules, pool definitions, cost pool groupings, and burden rates. Using this setup information, the system creates burdening transactions in the Burdening Detail Ledger table (F52G11) and the Burdening Summarized Ledger table (F52G02).