| To Define and Post Surcharges |  |
| Surcharges are a means of defining indirect project costs. Typically, surcharges are used to cover general overhead costs, including storage, handling, and maintenance costs, management overheads and so on. Surcharges are calculated as a percentage of direct costs and are posted to a sundry-cost object. Surcharges can be calculated on budgets, cost and revenue and posted to element, activity or cost component. Irrespective of its cost type, however, each surcharge is posted to a sundry cost code. Sundry cost is created for the element/activity/cost component. Sundry lines for surcharges are created when: Control data is generated You do a budget cost analysis Cost/revenue is approved or processed The application of surcharge and its calculation depends on the Use Surcharge field in the Projects (tppdm6100s000) session. The options are: No Surcharges: Surcharges are not applicable Surcharges on budget: Surcharge can be calculated on the budget lines. Surcharges on cost: Surcharge can be calculated on cost. Surcharges on budget and cost: Surcharge can be calculated on budget and cost. Folowing is the search path ERP LN uses to post surcharges: ERP LN checks if surcharge is defined for the project-specific cost object and then selects the element/activity/cost component to which the surcharge is posted. Sundry cost is created for the element/activity/cost component. If the surcharge is not defined at the project level, ERP LN checks if standard surcharge is defined for the cost object and then selects the element/activity/cost component to which the surcharge is posted. Sundry cost is created for the element/activity/cost component. |