Indirect Allocations

SUGGESTED

Another indirect allocation question.  We have always allocated based on a percentage of direct labor. This has worked great in the past as a subcontractor. The system does this automatically adding the set percentage to the direct labor hours worked.  As the labor shortage becomes more of a problem, we have had to lean on subcontractors a lot more.  Jobs that are performed by subs don't get hit with the indirect allocation, does anyone know of a way for Sage to do these allocations automatically?  How are other companies handling this?  We have talked about starting to look at indirects as a percentage of total direct costs or on direct labor and subcontract costs.  However, having only ever done it on direct labor makes us nervous about changing it. We want to make sure we aren't missing anything.  I also don't like the idea of manually making adjustments to many jobs each month, I am looking for a way to set it up automatically but haven't been able to figure out how. 

Parents Reply Children
No Data