To setup Cost Elements, go to Admin > to Admin > Setup > Accounting > Cost Elements, and create as many Fringe Cost Elements as needed to match the Direct Labor Cost Elements.
In this example, a Fringe Cost Element was created for both Client Site Labor (Onsite) and Company Site Labor (Offsite).
When setting up the Indirect Costs formulas, go to Admin > Setup > Accounting > Cost Structures > Indirect Costs tab:
- Each Fringe Cost Element should consist of at least:
- One Labor Cost Element
- Each Overhead Cost Element should consist of:
- One Labor Cost Element, at least; and
- One Fringe Cost Element.
If there is only one Fringe rate, enter the same provisional Fringe rate for all Fringe Cost Elements created.
- Easy to setup formulas (one-to-one relationship)
- Fringe Calculation is the same for both Onsite and Offsite
- Easy to validate when running cost reports