Creating an Overhead Rule

To create an overhead rule:

1. From the Joint Venture Management module (G09J), click Joint Venture Setup, and then Overhead Rules.

2. On the Work with Overhead Rules form, click Add.

3. On the Create Overhead Rule form, complete the required Overhead Rule field.

4. Optionally, enter a description for your overhead rule.

   You can also enter category codes for your rule by clicking the Category Codes collapsible form.

5. Click Save to save your overhead rule.

   The system displays the Edit Overhead Rule form.

6. In the header section of the Edit Overhead Rule form, optionally update the description for the overhead rule.

7. On the Overhead Rule Category Codes collapsible form, enter the category codes for your rule.

   You can enter the category code for your rule either on the Create Overhead Rule form or on the Edit Overhead Rule form.

8. Complete these required fields, and then click OK:

   • Overhead Method

     Specify the overhead method that the system uses to calculate the overhead. Values for this are:

     Day Rate

     Fixed Amount

     Fixed Amount with Escalations

     Fixed Percent

     Fixed Percent - Sliding Scale

     User Defined Method

     The system displays the respective subforms for the method that you choose to calculate overhead.

   • Currency Code

     The system automatically defaults the currency code based on the processing option specified in the P09J50 program. You can update the currency code, if required.

     This is the currency code for the amount (base amount, minimum amount, day rate, and so on) that is specified in each overhead method.

9. Optionally, complete these fields:

   • Effective From

     Enter the date from when the overhead record becomes active. This is the effective beginning date for the overhead method.

     Note: By default, the system displays today's date. You can override this date.

   • Effective Through

     Enter the date from when the respective method will no longer be considered when overhead calculations are performed.

   • Overhead Method Purpose

     Enter the purpose for the overhead method.

   • Inactive

     An option that indicates whether the overhead method is active.

     If you select this option, the system will not consider this method when calculating overhead.

   • Overhead Method Category Codes 1 through 10

     You can enter the category codes for the overhead methods that you choose.

   • Optionally, specify the account that will be used when the journal entry is created for the overhead amount:

     • Overhead Business Unit

       Enter a value that specifies the business unit.

       If Overhead Business Unit is specified, you must also specify an Overhead Object Account. If both are blank, the value in the JVOHE AAI is used.

     • Overhead Object Account

       Enter a value for an object account.

       If a business unit is not specified, then the system will use the business unit for which overhead is calculated to get an account, which is used when the journal entry is created. If all three fields are blank, then the value in the JVOHE AAI is used.

     • Overhead Subsidiary

       Enter a value to specify a subsidiary (this is optional).