Project burden codes
A burden code is used to identify the burden costs that you want to calculate. A burden cost can be various types of general and administrative overhead, fringe benefits, or other indirect costs that are associated with project labor transactions.
Burdens are used when line level allocations are required for tracking indirect costs versus monthly indirect allocations. There are two types of burden codes in Financials & Supply Management.
Fringe burdens
Fringe burdens use fringe burden codes to calculate fringe burden based on labor distributions for grant-sponsored projects. Fringe burdens are only used with grant labor distribution and are calculated when running the Distribute Labor action. Fringe burden setup and processing includes these attributes:
| Attribute | Description |
|---|---|
| Fringe burden code | Define the fringe burden codes and rates |
| Project employee | Assign the fringe burden code and rate to an employee |
| Project | Assign the fringe burden code and rate to a posting project |
| Project assignment labor | Assign an employee to a project and specify the effort percentages |
| Salary encumbrance | Fringe burden encumbrance are only generated with salary encumbrance |
| Labor distribution | Fringe burden transaction are generated with labor distribution |
Indirect burdens
Indirect burdens use indirect burden codes to create indirect expenses for administration and overhead fees based on project direct costs. Indirect burden setup and processing includes these attributes:
| Attribute | Description |
|---|---|
| Indirect burden code | Define the indirect burden codes and rates |
| Project indirect burden assignment | Assign indirect burden codes, groups, selected sources, and options for burden rate dates to projects |
| Copy indirect burdens | Copy burdens to all posting projects in a summary project |
| Generate indirect burdens | Indirect burdens are calculated by running the Generate Indirect Burden action. This action is independent from the Post Journals action |
| Delete indirect burdens | View draft burdens for accuracy. If they are not correct, delete the run group, correct the setup, and generate again. |
| Journalize indirect burdens | Run the journalize indirect burdens action to finalize the creation of indirect burdens. |
| Reverse indirect burdens | If journalized burdens are incorrect or if the burden rates retro actively change, run the Reverse Indirect Burdens action. |