The Overhead Stage

An overhead stage is a stage classification that allows the user to enter a fixed cost in the budget of the stage. Unlike all other stage classifications, the overhead stage does not calculate actual costs from transactions. The actual cost calculation of an overhead stage is calculated from the budget amount. The actual cost (calculated from budget) of the overhead stage shows in the Actual Cost columns and summary fields in lists and reports rather than the Overhead column.

The overhead stage is useful in the following situations:

• Additional miscellaneous supply costs are to be added to the job cost. These costs are not direct job costs from invoices but consist of a fixed amount entered by the user.

• The administrative overhead costs are added to the job cost based on a fixed dollar amount rather than a percentage. Review the Adding a Percentage Overhead section for details on percentage overhead costs.

• The user adds a fixed amount to the budget for administrative or other overhead costs.

Some rules to consider when using the overhead stage:

• The overhead stage can not be used to post transactions from any expense entry window such as an expense invoice, timecard, or inventory transfer window.

• The overhead stage must contain a budget amount. Otherwise the stage has no affect on job cost reporting.

• The user can add multiple stages classified as overhead for different groups of miscellaneous or overhead costs.

• The actual cost within an overhead stage is calculated each time costs are posted to a given job. The actual cost = budget amount * the percentage of the job that is completed. Percentage complete = ratio between the total actual costs of the entire job / budgeted costs of the entire job.

• The overhead stage's actual costs will show in the Actual Cost columns within each screen and report rather than the Overhead column.

Complete the following steps to create an overhead stage:

1. An overhead classification must be configured before an overhead stage can be created.
   
   Review the Introduction > Classifications section for detailed instructions on creating an overhead classification.

2. Create an overhead stage within the master stage list. Review the Introduction > Stages section for detailed instructions on how to create a new stage.

3. Insert the new stage within a job. Review the Jobs > Entering Job Stages section for details.
   

Do not confuse the stage classified as Overhead with the overhead totals and columns listed on job costing reports. The overhead stage will list the actual costs in a similar manner as actual cost transaction within any stage. The overhead column shown on reports and list is the overhead calculated from the Percent of Cost calculation within the Totals tab of a stage.