Construction

Head Office Overhead Recharge to Project

Allocating a portion of head office running costs (salaries, rent, IT) to each active project.

Account NameTypeDebit ($)Credit ($)
Work-in-Progress (WIP — HO Overhead)Asset (+)15,000.00-
Head Office Overhead PoolExpense (-)-15,000.00

💡 Accountant's Note

Head office overheads are allocated to projects using a predetermined rate (e.g., % of direct costs or revenue). This ensures the full cost of delivery is captured in each project's WIP.

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