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:

• Classified as a Burden Transactions expenditure type

• 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