Overhead Rate Setup and Input Parameters

The setup for the Overhead Rate provides a mechanism to tie a percentage rate as part of the full cost of an activity.  The sum of indirect and direct costs is often referred to as full cost. Cost Accounting Chart of Accounts elements must be set up in advance of the more specific setup required for the Overhead Rate process.  Chart of Accounts set up specifically requires the setting up of Major Program, Program, and Program Period code, and other optional elements such as Phase, Program Phase, and the Reimbursement elements such as Funding Profile, Funding Priority, and Funding Line.  Part of the Overhead Method setup can be accomplished in tandem with the Chart of Accounts setup, as there are a number of fields on the Major Program table that are relevant to the Overhead Rate process.  After the setup of the Chart of Accounts elements is complete, further data setup for the process can be initiated. Tables to be set up include the Overhead Rate Exception table and Overhead Rate Parameters.

The Overhead Rate process reads a record on the Overhead Parameter table. One of the fields on that record is the Run Type field.  This field will be discussed in more detail under the Overhead Parameters section below.  For the time being, it is worth noting that depending on run type, the Overhead Rate process uses five sources of information: