To Define and Post Surcharges

Surcharges are a means of defining indirect project costs. Typically, surcharges are used to cover general overhead costs, including storage, handling, and maintenance costs, management overheads and so on. Surcharges are calculated as a percentage of direct costs and are posted to a sundry-cost object. Surcharges can be calculated on budgets, cost and revenue and posted to element, activity or cost component.

Irrespective of its cost type, however, each surcharge is posted to a sundry cost code. Sundry cost is created for the element/activity/cost component.

Sundry lines for surcharges are created when:

  • Control data is generated
  • You do a budget cost analysis
  • Cost/revenue is approved or processed

The application of surcharge and its calculation depends on the Use Surcharges field in the Projects (tppdm6100m000) session. The options are:

  • No Surcharges: Surcharges are not applicable
  • Surcharges on budget: Surcharge can be calculated on the budget lines.
  • Surcharges on cost: Surcharge can be calculated on cost.
  • Surcharges on budget and cost: Surcharge can be calculated on budget and cost.

Following is the search path LN uses to post surcharges:

  1. LN checks if surcharge is defined for the project-specific cost object and then selects the element/activity/cost component to which the surcharge is posted. Sundry cost is created for the element/activity/cost component.
  2. If the surcharge is not defined at the project level, LN checks if standard surcharge is defined for the cost object and then selects the element/activity/cost component to which the surcharge is posted. Sundry cost is created for the element/activity/cost component.