Overhead application bases set-up

To set up overhead application bases in LN define the following data in the Overhead Application Base (tppdm2600m000) session. You can access this session from the Overhead Application Bases (tppdm2100m000) session. Note: Overhead costs are not included in the progress and monitoring process.

Step 1. 

Define the base code using the Overhead Application Base (tppdm2600m000) session and enter the description.

Step 2. 

Select the range of dates of the transaction. Note: If the transaction date is outside the validity period of the Overhead Application Base, the overheads are not calculated. However, the dates can be modified when the Overhead Application Base status is set to Draft.

Step 3. 

Select the Base Type, following are the possible values:

  • Amount: Enables you to calculate overhead over the transaction amounts of various cost types using an Overhead Percentage.
  • Direct Labor Hours: Enables you to calculate overhead over the number of Direct Labor hours booked into a project, by using an hourly Overhead Rate. You can also use an additional overhead percentage. Note: This base type is only applicable on transactions of cost type Labor defined in the Assignments Cost Base tab.
Step 4. 

Enter the overhead amount (mandatory for the bases of the type amount).

Step 5. 

Enter the overhead percentage.

Step 6. 

Select or define the unit cost currency using the Currencies (tcmcs0102m000) session. This is field is mandatory only when the overhead rate is entered.

Step 7. 

Define or create the overhead cost objects using the Standard Overhead (tppdm0142m000) session. LN defaults the description for the cost object from the Standard Overhead (tppdm0142m000) session.

What LN does:

  • LN defaults the value to 1, when the first version of the Overhead Application Base is created. Note: The value of the version cannot be changed manually.
Step 8. 

Set the status. These are the possible values:

  • Draft
  • Active
  • Closed

Changing statuses is restricted as illustrated in the below figure: [...]

Step 9. 

Enter the level at which overheads must be calculated (allowed values: 1 to 9). This is mandatory when the base type is Amount. The level is defined to allow LN to follow the right sequence while calculating overheads. Example: If you set the level to 2 and select the Cost Type as overheads in the Assignment Cost Base tab. LN calculates the overhead over the overhead. If the level is set to 3, then LN calculates the overhead over the overhead over the overhead.

If the base type is set to Direct Labor Hours, the value of the level field must always be 1.

Note

  • When you specify the overhead rate (applicable only for base type Direct Labor Hours), the overhead amount applied to the projects is the product of the quantity of direct labor hours and the overhead rate.
  • When you specify the overhead percentage, the overhead amount applied to the projects is the product of the quantity of direct labor hours and the overhead percentage.

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