Implementation Tips For Tracking Overhead Costs
Overhead costs that are not associated with Projects are usually entered directly in an accounting system and not Sage Construction Management. However, if these costs are going to be tracked in Sage Construction Management, the recommended approach is shown below.
1. Implementation Plan: Contact Management
Make sure all suppliers that provide services or products for the office are added in the Contact Management module.
Example Firms:
- Office Supply Vendors
- Copy and Shipping Vendors
- Outside Legal and Accounting Firms
- Construction Lead Service Providers
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2. Implementation Plan: Project
Create a "fake" project called OVHD or OFFICE that will be used track office overhead expenses.
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3. Implementation Plan: Project Directory
The same companies in step 1 should be added to the Project Directory.
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4. Implementation Plan: Job Cost Code Structure
Below are some examples of overhead cost categories. Typically, Job Cost Codes for this project would match the Accounting System's Items or GL Chart of Accounts that pertain to Overhead.
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| Order # | Job Cost Code | Description | Quantity | Units | Internal Division | Internal Division Description |
| 1 | 001-01 | Business Development Labor | 1 | LS | 001 | Marketing and Business Development |
| 2 | 001-02 | Marketing Supplies and Misc. Expenses | 1 | LS | ||
| 3 | 002-01 | Estimators Labor | 1 | LS | 002 | Estimating |
| 4 | 002-02 | Blueprints, Reprographic Costs for Job Opportunities | 1 | LS | ||
| 5 | 003-01 | Accounting Labor | 1 | LS | 003 | Administrative |
| 6 | 003-02 | Clerical Labor | 1 | LS | ||
| 7 | 004-01 | Office Supplies | 1 | LS | 004 | Office |
| 8 | 004-02 | Office Utilities | 1 | LS | ||
| 9 | 004-03 | Office Rent | 1 | LS | ||
5. Implementation Plan: Prime Contract and Original Budgets
Create a "fake" Prime Contract for each fiscal year where YOUR COMPANY is referenced in the Issued By (ex. Client) and Issued To (ex. Contractor) fields. This will allow yearly comparisons in the Project Financial Dashboards View.
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Prime Contract Examples:
Prime Contract # 2017
- Issued By: Tower Contracting
- Issued To: Tower Contracting
- Subject: Fiscal Year 2017 Overhead Expenses
Tip: The status for this contract could be changed from 'Approved' to 'Approved and Closed' once the 2018 fiscal year starts.
Prime Contract # 2018
- Issued By: Tower Contracting
- Issued To: Tower Contracting
- Subject: Fiscal Year 2018 Overhead Expenses
Contract Type and Budgets:
- Contract Type: Fixed Lump Sum or Cost Plus (Does not matter)
- Cost Budget: Could be set to yearly budget
- Contract Amount: 0
- Labor Hour Budget: 0
- Equipment Hour Budget: 0
6. Implementation Plan: POs and/or Subcontracts
Create POs and Bills for overhead materials and services.
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7. Implementation Plan: Enter and Approve Labor Timecards
Related Help Topics:
- Help Topic - Labor Timecards
- Help Topic - Adding Labor Timecards - Daily
- Help Topic - Adding Labor Timecards - Weekly
- Help Topic - Adding Crew Timecards - Daily
- Help Topic - Import Timecards From Microsoft Excel
- Help Topic - Approving Labor Timecards
8. Implementation Plan: Review Standard Job Cost Dashboards in Project Analytics
In Project Analytics, there are dashboards available to show financials rolled up by prime contract and by job cost code for cost tracking.
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