Overhead Calculation Using Day Rate Method

To calculate overhead amount using the Day Rate method, the system:

1. Retrieves the default day rate from the Overhead Detail table (F09J51) and calculates overhead based on the effective dates specified in the P09J50

2. Considers any exception operational statuses for the joint venture or business units in the F09J52 table, and calculates overhead for the exception statuses based on the day rate specified for these statuses

   If a operational status is available for the joint venture or business unit and the day rate is not specified in the P09J50 program as an exception status, the system considers the default rate to calculate the overhead amount.

3. If the effective from or effective through dates of the method results in overhead calculation for only a few days in a month, then overhead is charged only for the number of days for which the method is valid or effective.

Using all of this information, the system calculates the overhead amount for each day rate using this formula:

Overhead Amount = Number of Days x Default Day Rate