Overhead Groups

Navigation:	Setups > Staff Related Codes > Overhead Group List
Access Right:	Setups > Staff Related Codes >Overhead Groups

Purpose

Overhead groups allow the grouping of staff for the purposes of calculating and spreading overhead on costs to staff hourly rates. If you are not using Timemaster to calculate hourly rates, then overhead groups may be ignored as they would have no function.

Item	Database Item	Description
Overhead Group	overhead_group	A unique code to identify the cost centre, staff will be allocated to overhead groups within the staff details records.
Description	overhead_name	A description of the overhead group.
Percentage On-cost	oncost_percent	This is the percentage on cost that will be added to each productive employee’s hourly rate within the overhead group to recover the overhead. It may be either calculated by Timemaster during the hourly rate calculations, or you may calculate it your self using an external spreadsheet.
Available for use?	avail_for_use	Un-tick this checkbox if you no longer wish the code to appear in lookups

Additional Information

You should create an overhead group for each cost centre in your organisation as this is the level at which the overhead on cost is calculated and spread as an on cost to the hourly rate of every person in the cost centre.

Overhead groups are generally the same as resource groups, although they could be placed at a higher level.

The example below serves to illustrate the difference between overhead groups and resource groups.

Overhead Group:		Development Staff
Resource Group:	Specialist Development	Routine Development	Consultancy Development

When calculating the overheads (share of office accommodation charges, support staff etc.) it has been found that the three groups of development staff each share the cost on an equal basis. The diagram above shows that all staff belonging to the Specialist, Routine and Consultancy Development teams contribute and take from the total overheads from all three groups. Therefore a single Overhead Group of Development Staff has been created and allocated to all the staff within the three resource groups. An alternative to the above would be to create three overhead groups, one for each resource group each with the same percentage on-cost.