KBA-01568: Allocation Example


How would I set up the following allocations?

  • A Labor Burden/Overhead allocation of 142% to Labor
  • An additional 6% allocation for Cost of Money
  • An allocation for Fees based on a 155% Fee to the State and our internal 15% handling fee

So, for example, if Labor is $100:

  • Labor Burden/Overhead allocation = $142.00
  • Additional 6% for Cost of Money = $0.60
  • Fee Allocation is 15% handling on a 155% State Fees on the Labor Amount = $38.25


Using the Allocations tool found on the Manage Dashboard:

Source Account Category Sequence Target Account Category Print As Allocation %
Labor 10 Revenue Burden/Overhead 142
Labor 20 Revenue Cost of Money 6
Labor 30 Revenue Fees 38.25**

**The 155% of State Fee * 15% Handling Fee = 38.25% Allocation %

Note:  This example uses only one Sequence–that is, there are no compound calculations such as 6% for Insurance and then another 3% for Bonds but the 3% for Bonds is calculated on the Base Cost + the Insurance.  For this type of compound allocation, Bonds would be in Sequence 100, and if you had another allocation that included all the Allocations from the base calculation + Bonds, you would place that Allocation in Sequence 300.

Additional Comments:

See KBA-01291 for more information on applying allocations in Sequences. See also the Change Order Management technical white paper.

KBA-01568; Last updated: November 10, 2016 at 9:08 am
Keywords:  Change Order Processing, Markups