As an alternative to recording labor overhead with Cost Allocation, there is functionality to do that calculation through the Internal Costing process based on usage of Task Order and/or Task with the possible use of Program Class, Section, and Sub Task. The Usage Types of Labor, Interfaced Labor, Adjustment, and Retroactive are the only ones read by this process. After setup on the following pages listed below, Internal Costing Usage Transactions (ICT) are processed to update the Internal Costing Journal (ICJ), then the Internal Overhead Process is run, and finally the Internal Costing chain is run to create Charge (CH) transactions to record the overhead.
As the Internal Overhead Process is based on settings at Task or Task Order (see the Overhead Indicator on Department – DEPT) as well as settings on the Overhead Rate and Overhead Variation Code pages, it is critical that assurances are put into place that ensure the process is able to locate the information necessary to perform calculations. Having the Overhead Fiscal Year on the Internal Costing Usage Transaction (ICT) is the primary trigger that differentiates ICJ records for overhead from those for internal costs. It is suggested that a cloned ICT transaction is used or a cloned Internal Costing event type (IC01) is used to enforce correct transaction data entry to the journal for processing. If using a cloned event type, the requirement for Task and/or Task Order can be accomplished. If using a transaction code, those two can be required along with Overhead Fiscal Year, Variation Code, and Part-Time / Full-Time indication as well as restrict to just those four Usage Types. This can be done with one or more Configurable Rule (BORULE) records.
Of particular note, there is a field called Flag 1, as delivered, that can be made visible on the ICT and ICJ (as is the case will all fields associated with Cost Allocation Plan functionality) that can be used to record information to the ICJ for reporting purposes only and it will cause that journal record to be skipped by the Internal Overhead Process.
The following pages can be set up to establish a cost allocation plan in order to calculate overhead with Internal Costing.