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Menu Group: File Maintenance- Optional
Overhead codes are used for applying an overhead to salary expenses. For every hour of an employees pay you may apply an overhead expense. This expense typically will be some fixed percentage of the original expense. For example if you are paying an employee 10 hours at 8.00 per hour you may want to accrue an overhead expense of 2% to the 80.00 (1.60) salary expense. The debit and credit accounts can be masked to the g/l codes used on the original expense. The following will illustrate this point:
| Hours | Rate | Total Pay | Debit | Credit |
| 10 | 8 | 80.00 | 2343454532 | 1298345689 |
The resulting G/L entries from this transaction will be (based on the mask in the screen above):
| G/L Code | Debit | Credit |
| 2343454532 | 100.00 | |
| 1298345689 | 100.00 | |
| 2343454512 | 20.00 | |
| 1298345612 | 20.00 |
Note the overhead entry for 20.00 and the masked G/L codes that were created as a result of the mask application.
Overhead will only apply to EBD's where the Overhead box is clicked. This feature allows you to define which earnings categories can be considered for overhead. For example, you may want to calculate overhead for Regular time but exclude overtime from the calculation. To do this just set EBD 101 for overhead but don't set EBD 102.
Last Updated October 20, 2006