Methods for Calculating Overhead

To calculate overhead, you use the Overhead Rules program (P09J50) to create an overhead rule that can contain different calculation methods. Each method has an effective start and end date for calculating the overhead amount. The system provides five overhead charging methods to use: Fixed Amount, Fixed Amount with Escalation, Fixed Percent, Fixed Percent with Sliding Scale, and Day Rate and User Defined Method.

The operational status of the joint venture is used when calculating the overhead amount using the Fixed Amount, Fixed Amount with Escalation, and Day Rate methods. The system uses all the operational statuses of the joint venture that are effective for the month for which overhead is calculated. If you do not want to include an operational status in calculating overhead, you must set up that operational status as an exception status with chargeable months set to 0.

See Working with Operational Status for the Joint Venture and Business Unit (Release 9.2 Update).