Set Up Periodic Adjustments to Overhead Calculations

You can set up and assign a periodic adjustment factor to an overhead method. A periodic adjustment factor enables you to adjust the percentage or rate used in the overhead calculation or to adjust the fixed overhead amount at different intervals.

Periodic adjustment factors enable you to adjust overhead calculations for inflation, in accordance with indexes such as COPAS and CPI and other various reasons.

In a periodic adjustment factor, you can add one or more adjustment factors that consist of an adjustment value and a start date. The adjustment value is the percentage by which you want to adjust the percentage, rate, or fixed amount in the overhead method. It can be a positive or negative value. The start date represents the date in which you want to apply the adjustment to the overhead method. For example, if you need to adjust the rate in an overhead method for 6 consecutive months, you can add 6 adjustment factors to adjust the rate for each month.

You can also assign a periodic adjustment factor to overhead methods that use a sliding scale of percentages or rates for the overhead calculation.

You can assign a single periodic adjustment factor to one or more overhead methods. You can update an assigned periodic adjustment if it hasn't been processed to make adjustments to the overhead method.

To apply periodic adjustments to your overhead calculations, perform these tasks:

• Create a periodic adjustment factor with one or more adjustments.
• Assign the periodic adjustment factor to one or more overhead methods.
• Run the process to update overhead methods based on the associated periodic adjustment factor.
• Run the process to calculate overhead using the adjusted overhead methods.