Indirect Rates and Cost Centers
Provisional indirect rates are indirect rates which are approved by DCAA or submitted and pending approval.
To add an indirect rate:
1.Click the plus sign on the first empty row.
2.Select the type of rate (i.e. G&A, Overhead…)
3.Enter the rate as a percent
4.Click the green check-mark to save the rate. This will also add an empty line for additional rates.
Complete the following steps to update an indirect rate that will be used during future period processing or re-processing. These steps adjust the indirect rate going forward but do NOT generate a rate adjustment invoice. See Adjust Full Fiscal Year for calculating a fiscal year rate adjustment.
1.Click the pen icon to open the line for editing
2.Enter the new rate
3.Click the green check-mark to save the rate.
A Cost Center defines a set of DCAA provisional rates and consists of a G&A rate and optionally an overhead rate, fringe rate and handling rate. The initial/default cost center represents the first set of indirect rates entered.
When multiple overhead rates are entered, an additional cost center will automatically be created for each indirect rate grouping (i.e. G&A with OH1 and G&A with OH2). Assign a meaningful name to each cost center to make reporting more user friendly.
When multiple overhead and fringe rates are entered, an option is displayed to establish additional cost centers. Group indirect rates into these cost centers according to your business model. Consult your government contract cost accountant or eFAACT Advisor for assistance in tailoring cost centers to your business requirements.
When more than one cost center is established, use the All Users page to assign employees to their respective cost center. To burden cost plus charges with a specific cost center (overriding the employee cost center), see Contracts and Funding which allows a cost center to be assigned to all activity for a charge number.
See Account Allocations for details on how to allocate expense costs to a cost center.
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