Question:
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
Answer:
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