In some cases, it is required to distribute the net billable time among the overhead personnel. This process is completed across a set of cost objects, determined by a previous distribution pattern that is based on other workers’ allocated hours from the same company.
When the prorate distribution is initially calculated, it computes what the previous period’s allocations are for the selected date or date range. A list of the used Level 2 cost objects and their percentage of hours allocated are displayed in the Prorated Detail grid. At this point, Track users can modify the parameters for calculating the distribution or manually remove unwanted cost objects one at a time.
The two distribution parameters entered by Track users are the maximum number of work orders (or Level 2 cost objects) used in the calculations and the minimum percentage allowed for distributions. The distributions can be limited to the most frequently used work orders (or Level 2 cost objects) or can be done without any limitations. Once the distributions are calculated according to the Track user’s specifications, they can be applied to the overhead personnel with a specific labor type flag, such as salaried, salaried non-exempt, or wage. Ensure the overhead personnel have one of the labor type flags selected on the Labor Information screen under the Labor Type for Prorations area.
The allocations are systematically made for each overhead personnel who do not already have hours allocated. Thus, if the personnel’s hours have already been allocated, the distributions will not apply to them. When the process is finished, the overhead personnel who have their hours allocated using this feature will appear the same as the personnel who have their hours allocated directly through any other allocation functionality. The only difference is the time the Track user saves by not having to manually enter and calculate cost object distributions for the overhead personnel.
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