Apply Periodic Adjustments to an Overhead Method

Apply periodic adjustments to a fixed amount or to one or more percentages or rates in an overhead method.

Perform these steps only if you’ve set up a periodic adjustment factor and assigned it to an overhead method. If you don’t need to adjust the overhead amount or calculation, then proceed to the next task to run the process to calculate joint venture overhead.

To apply periodic adjustment factors to overhead methods, run the Process Joint Venture Overhead process in the Apply Periodic Adjustment Factors mode. You can run it in a draft mode before running it in a final mode to review the adjustments that will be applied to the overhead methods.

You have the option to run the process in draft mode before running it in final mode to review how the values in the overhead method will be adjusted. When the process completes, you can access the text file generated by the process and verify that the percentage, rate, or fixed amount was adjusted as expected. This gives you the opportunity to make any corrections to the periodic adjustment factor, if necessary, before running the process in final mode.

1. From the Home page, select Joint Venture Management, and then select Process Joint Venture Overhead from the Quick Actions list.
2. For the Processing Mode, select Apply Periodic Adjustment Factors.
3. Select Draft or Final for the Adjustment Factor Mode.
   The Draft mode enables you to review how the calculations in the overhead method will be adjusted. When the process completes, you can access the text file generated by the process and verify that the percentage or rate was adjusted as expected. This gives you the opportunity to make any corrections to the periodic adjustment factor, if necessary, before running it in Final mode.
4. Complete these fields:
   • Periodic Adjustment Factor.
   • Joint Venture.
   • Overhead Method. You can leave this field blank if the periodic adjustment factor is associated to more than one overhead method. This enables you to apply the adjustment to all applicable overhead methods in the same process run.
   • Adjustment Factor Value from Date.
   • Adjustment Factor Value to Date.

   For the preceding date fields, enter a date range that corresponds to the start date of the adjustment that you want to use to adjust the percentage, rate, or fixed amount. You might have to look up the adjustment start date in the periodic adjustment factor.

   If a periodic adjustment factor contains multiple adjustments for different dates, and you want to adjust the overhead calculations accordingly for each of those dates, then enter a range that encompasses the adjustment start dates.

5. Click Submit.
6. When the process completes, access the associated text file to review the changes applied to the overhead method, as shown in the following example:

   The preceding image shows a text file with the results of running the process to apply periodic adjustment factors in draft mode. In this example, a periodic adjustment factor was applied to an overhead method that uses a sliding scale with 3 different rates. The text file provides the details of the adjustments applied to the overhead method, such as the adjustment factor date, the adjustment percentage, the original rates, and the updated rates. If an adjustment was applied for a previous period, it’s indicated by a Y in the Catch Up column.

7. After running the process in Final mode, you can open the periodic adjustment factor and verify that the adjustment was applied:
   1. On Periodic Adjustment Factors, search for and open the periodic adjustment factor.
   2. On Edit Periodic Adjustment Factor, in the Factor Values section, check the Applied column to verify that the adjustment was applied.