Example of Creating Burden Cost Codes
The following scenario illustrates burden cost codes that represent distinct types of burden to apply to raw costs.
Burden Cost Codes
Burden cost codes are created for each type of burden that will be applied to raw costs, and are defined on the Manage Burden Cost Codes page. In this example, assume that labor raw costs are burdened with fringe benefits, overhead, and administrative costs. Material raw costs are burdened with material handling fees and administrative costs. Expenses are burdened only with administrative costs.
You can optionally assign an expenditure type to any burden cost code to capture burden costs on separate, summarized expenditure items. Only expenditure types with a Burden Transactions expenditure type class are available for assignment to a burden cost code. The assigned expenditure type becomes the expenditure type for that type of burden cost.
Ensure that the expenditure types that you assign to burden cost codes are:
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Classified as a Burden Transactions expenditure type
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Assigned to the reference data sets for each project unit that will own projects receiving summarized burden transactions
The following table shows burden cost codes that represent distinct types of burden to apply to raw costs.
Burden Cost Code |
Description |
Expenditure Type |
---|---|---|
Administrative |
Corporate expenses such as corporate staff and marketing |
General and Administrative |
Fringe - Faculty |
Employer paid payroll costs, insurance, and pension for faculty |
Fringe Benefits |
Fringe - Staff |
Employer paid payroll costs and insurance for staff |
Fringe Benefits |
Material Handling |
Material handling fees |
Material |
Overhead |
Support staff, equipment rental, supplies, building rent, and facilities |
Overhead |