Entering Information for Calculating Overhead Using the Fixed Percent Method
When you select the Fixed Percent method in the Overhead Method drop-down menu, the system displays the Fixed Percent subform.
To enter information for the Fixed Percent method:
Complete the required fields:
Fixed Percent field
The fixed percent is the percentage that is used when calculating the overhead.
Basis
Select a basis from the overhead basis drop-down list to specify the basis to use when calculating overhead. Values for this field are:
Inception-To-Month
Month
Year-To-Month
These values are stored in UDC table (09J/BA).
In the case of acquired business units that have existing overhead agreements, ensure that the inception-to-month for the business unit is entered as the acquisition date in the Business Unit Attributes program (P09J0006). Based on the values specified, the system selects the correct journal entries for the indirect costs for calculating overhead.
Optionally, complete the following fields:
Account or Account Group
If you select the Account option, enter the account number in the Business Unit/Object/Subsidiary fields.
If you select the Account Group option, enter the account group name in the Account Group Name field.
Minimum Overhead Charge
Enter the minimum overhead chargeable amount for the month that the system uses when you calculate the overhead.
For example, consider that the overhead amount calculated for a month is 400 USD, but the minimum overhead charge specified in this field is 500 USD. If the overhead amount calculated is less than the minimum overhead chargeable amount that must be charged, the system charges 500 USD as the overhead amount.