Entering Information for Calculating Overhead Using the Fixed Percent with Sliding Scale Method

When you select the Fixed Percent with Sliding Scale method in the Overhead Method drop-down menu, the system displays the Fixed Percent with Sliding Scale subform.

To enter information for the Fixed Percent with Sliding Scale method:

1. Complete the following fields:

   • 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.

   • 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 amount specified in this field is 500 USD. If the overhead amount calculated is less than the minimum overhead charge amount that must be charged, the system charges 500 USD as the overhead amount.

   • Lower Limit

     Enter an amount that specifies the lowest limit in the amount range.

     Note: The lower limit must be blank for the beginning range of the sliding scale.

   • Upper Limit

     Enter the amount that specifies the maximum amount in the amount range.

     Note: The upper limit must be blank for the ending range of the sliding scale.
     Note: While calculating overhead, you must adjust the lower and upper limits for the sliding scale ranges in order to consider the overhead that is already charged against the business unit prior to the acquisition.

   • Fixed Percent

     Enter a percent that is used to calculate the overhead when the gross amount is within the associated sliding scale amount range.