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Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 11 · Burdening and Cross-Charge

Burden structures and cost codes

Lesson 113 of 198 · 13 min

Create burden cost codes for fringe, overhead and G&A, then a burden structure. Define the cost bases — which expenditure types each burden applies to. Set the precedence, so overhead applies on top of fringe, and set whether burden is additive or compounding. PRECEDENCE AND COMPOUNDING ARE WHERE THE ARITHMETIC LIVES. Overhead on fringed labour is a different number from overhead on raw labour. Finance will have a view; get it in writing. The cost base determines what gets burdened. Travel expenses usually do not attract fringe. Confirm every base — one at a time, not as a list somebody nods at. See the resulting build-up with actual numbers on it.

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In this module: Module 11 · Burdening and Cross-Charge

  1. 1Why burdening exists
  2. 2Burden structures and cost codes
  3. 3Burden schedules and rates
  4. 4Burden in the accounting
  5. 5Cross-charge: the two models
  6. 6Configuring borrowed and lent
  7. 7Transfer price rules and schedules
  8. 8What breaks
  9. 9Lab: three burden treatments and a cross-charge