Shop Management Software Defines Indirect Costs

The latest build of Visual EstiTrack provides users with the ability to define indirect costs codes for categorizing and tracking time against indirect general administrative activities such as building maintenance, repair or cleaning. Shop orders can be flagged as being indirect shop orders so that they are excluded from being posted to work in process inventory.   Each indirect cost code can be defined with an absorption general ledger account and component general ledger accounts for labor, burden, material and other costs.

The latest build of Visual EstiTrack provides users with the ability to define indirect costs codes for categorizing and tracking time against indirect general administrative activities

such as building maintenance, repair or cleaning. Shop orders can be flagged as being indirect shop orders so that they are excluded from being posted to work in process inventory.  Each indirect cost code can be defined with an absorption general ledger account and component general ledger accounts for labor, burden, material and other costs.

A new monthly indirect costs screen can then be used to calculate and create monthly general journal entries to offset the direct labor absorption account and distribute the component costs to there appropriate general administrative expense accounts for each indirect cost category with activity during the target month.