Entering Information for Calculating Overhead Using the Fixed Amount Method

When you select the Fixed Amount method in the Overhead Method drop-down menu, the system displays the Fixed Amount subform.

To enter information for the fixed amount method:

1. Complete the required Base Amount field.

   Enter the base amount that the system uses to calculate the overhead.

   This amount will be calculated as overhead for all the operational statuses of the joint venture or business unit.

2. On the Exception Operational Status By section of the subform, select either the joint venture or the business unit option. By default, the joint venture option is selected.

3. Optionally you can complete these fields:

   • Operational Status

     Select an operational status from the Operational Status drop-down list.

   • Chargeable Months

     Enter the number of months for which overhead is charged in the Chargeable Months field.

     Chargeable months are the number of months for which overhead is charged when the joint venture or business unit is at the specified operational status.

     If you do not want to calculate overhead for a particular operational status, then you need to add that operational status as an exception status with chargeable months as zero.