When closing Project Entry (or clearing the screen), we get a warning message that says: “At least one Burden Set should be added for the project.”
We can get past this message without issue and I can see how to define a Burden Set for the project, but I can’t seem to find what exactly a Burden Set is or why it would be needed.
The help file hasn’t been helpful.
Does anyone have a better description of what a Burden Set is and when you would need to use one on a project?
JOE ROJAS
Epicor Applications Manager
VENTION MEDICAL + DESIGN & DEVELOPMENT
Advancing Your Innovations For Health
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Absorption accounting is a process where you can try to match your costs to your revenue. It is easier to track direct costs (materials and labor) to a project because you know the costs of those items but indirect costs (accountants, engineers, ERP people, building and other fixed and variable costs) are harder to match. Standard Epicor gives you a material burden and a labor burden field. This is just money to add to the part so it becomes a part of inventory and the expense is recognized when you ship product. Companies do a burden study to take fixed and variable costs and, with some budget in mind), spread those costs over the year. It’s a bit of witchcraft for those who know how to do it well.
Projects are a tougher beast. They can go on longer and maybe you’re shipping engineering and not product. Burden Codes and Sets allow you to absorb costs other than Labor and Material. You can do contract work, subcontracting, direct materials, and a few others to absorb the costs of the projects. They are not necessary but are available to the project accountant who is trying to match costs with revenue.