Construction
Head Office Overhead Recharge to Project
Allocating a portion of head office running costs (salaries, rent, IT) to each active project.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Work-in-Progress (WIP — HO Overhead) | Asset (+) | 15,000.00 | - |
| Head Office Overhead Pool | Expense (-) | - | 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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