Overhead Applied Account in General Posting Setup

Beatrice

Hi!

Can someone give me a brief overview of the importance and use of the Overhead Applied Account in the General Posting Setup window?

In our actual setup of posting groups, we have not entered any G/L Account in the Overhead Applied Account field and we could post our invoices.

But just today, while posting an invoice, we got a message which required us to specify a G/L Account in the Overhead Applied Account field? Why?

Thanks in Advance.

Regards,
Beatrice.

vjac

It is used to post the indirect cost to the income statement.
Check the field "Indirect Cost %" in the lines of the invoice you are trying to post, this is posted (well, actually the resulting amount) to the Overhead Applied Acc.

waleedawny

thank you. this has helped me today!