The Overhead Stage

An overhead stage is a stage classification that allows the user to enter a fixed cost in the budget of the stage. Unlike all other stage classifications, the overhead stage does not calculate actual costs from transactions. The actual cost calculation of an overhead stage is calculated from the budget amount. The actual cost (calculated from budget) of the overhead stage shows in the Actual Cost columns and summary fields in lists and reports rather than the Overhead column.

The overhead stage is useful in the following situations:

Some rules to consider when using the overhead stage:

Complete the following steps to create an overhead stage:

  1. An overhead classification must be configured before an overhead stage can be created.

    Review the Introduction > Classifications section for detailed instructions on creating an overhead classification.

  2. Create an overhead stage within the master stage list. Review the Introduction > Stages section for detailed instructions on how to create a new stage.

  3. Insert the new stage within a job. Review the Jobs > Entering Job Stages section for details.

Do not confuse the stage classified as Overhead with the overhead totals and columns listed on job costing reports. The overhead stage will list the actual costs in a similar manner as actual cost transaction within any stage. The overhead column shown on reports and list is the overhead calculated from the Percent of Cost calculation within the Totals tab of a stage.