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Account Assignment

Knowledge Base | Support Portal | Help Desk | Pool Setup Wizard

The Account Assignment screen is where you assign general ledger accounts imported from Quickbooks to indirect pools. It works in conjunction with the Pool Setup Wizard to design your indirect rate structure. The combination of the Account Assignment screen and the Pool Setup Wizard allows you to create thousands of different configurations to customize your indirect rate structure. If you need help in designing your indirect rate structure, please do not hesitate to submit a ticket to our Support Portal for email support or schedule a paid appointment for $125 per hour with our Help Desk.

importance of a well-designed indirect rate structure

The design of your indirect rate structure will have a very significant impact on your company’s profitability, efficiency, and growth prospects. A poorly-designed indirect rate structure could have several negative consequences, to include:

  • Less than full recovery of your company’s indirect expenses through your billings to both federal and commercial customers

  • Lower profit or even a financial loss that jeopardizes the continued existence of your company

  • Painful audit adjustments from DCAA or other federal auditors resulting in large reimbursements paid to the federal government

  • Loss of productive time to handle federal audits which is better spent on business development and delivery of services and products

  • Loss of current federal contracts due to non-compliance with FAR and CAS regulations

  • Inability to bid on future federal contracts due to a non-compliant indirect rate structure

  • Low win-ratio on contract bids due to non-competitive bid rates that could have been optimized using GovBooks

  • Inability to obtain bank financing or paying too much for financing due to poor financial performance

To summarize, the design of your company’s indirect rate structure could be one of your most important financial decisions. GovBooks allows you to customize and experiment with thousand of indirect rate structures to optimize your financial strategy.

When we implement your GovBooks system, we will consult with you to design your indirect rate structure. However, your company will transform over time, and GovBooks allows you to change your indirect rate structure. Given the importance of any changes to your indirect rate structure, we advise you to schedule a Help Desk appointment to have us review your set up in the Pool Setup Wizard and the Account Assignment screen.

Sample Indirect Rate Structures

The following indirect rate structures are meant to serve as examples for instructional purposes only and do not represent our advice for your particular company. However, these examples are the most common indirect rate structures that are deployed by federal contractors, but please keep in mind that your company may decide that additional customization is required, with additional pools and service centers. GovBooks is able to customize thousands of different indirect rate structures. If you need help in designing your indirect rate structure, please do not hesitate to submit a ticket to our Support Portal for email support or schedule a paid appointment for $125 per hour with our Help Desk.

Please click on an example below to learn how to set up in GovBooks.

  • Three-tier, total cost input

  • Two-tier, total cost input

  • One-tier, total cost input

  • Value-added

  • Direct labor input only

Cost Types

Across the top column headings you will see the Cost Types. Each column contains check boxes that you will check to assign a Quickbooks general ledger account to an indirect pool. The Cost Types are created in the Pool Setup Wizard when you set up a new indirect pool.

  • Direct Labor and Direct Non-Labor - Used to generate reports. Select this Cost Type for any general ledger accounts that are used from direct labor or direct non-labor costs. This Cost Type is set up by default.

  • Fringe Expense Pool and Fringe Base - Used to assign general ledger accounts to fringe pools and bases. One set of fringe pool and base Cost Types are set up by default. You may add up to 9 additional sets of fringe pool and base Cost Types in the Pool Setup Wizard.

  • Facilities Pool Labor and Non-Labor - Used to assign general ledger accounts to facility pools. There is no need to assign general ledger accounts to a base because the allocation is determined in the Facility Pool Setup screen. This Cost Type is optional and is created in the Pool Setup Wizard. You may add up to 10 facility pools in the Pool Setup Wizard.

  • Overhead Pool Labor, Non-Labor and Base - Used to assign general ledger accounts to overhead pools. This Cost Type is optional and is created in the Pool Setup Wizard. You may add up to 10 overhead pools in the Pool Setup Wizard.

  • Value-add Pool Labor, Non-Labor and Base - Used to assign general ledger accounts to value-added pools. This Cost Type is optional and is created in the Pool Setup Wizard. You may add up to 10 value-added pools in the Pool Setup Wizard.

  • Service Center Pool Labor and Non-Labor - Used to assign general ledger accounts to service center pools. There is no need to assign general ledger accounts to a base because the allocation is determined in the Service Center Pools Setup screen. This Cost Type is optional and is created in the Pool Setup Wizard. You may add up to 10 facility pools in the Pool Setup Wizard.

  • G&A Pool Labor, Non-Labor and Base - Used to assign general ledger accounts to the G&A pool. One set of G&A expense pool and base Cost Types are set up by default. You may only use one G&A pool.

  • B&P Pool Labor and Non-Labor - Used to assign general ledger accounts to the B&P pool. There is no need to assign general ledger accounts to a base because the B&P Pool is a sub-pool of the G&A pool. One set of B&P Cost Types is set up by default. You may only use one B&P pool but may track individual B&P efforts by Project.

  • IR&D Pool Labor and Non-Labor - Used to assign general ledger accounts to the IR&D pool. There is no need to assign general ledger accounts to a base because the IR&D Pool is a sub-pool of the G&A pool. One set of IR&D Cost Types is set up by default. You may only use one IR&D pool but may track individual IR&D efforts by Project.

  • Unallowable Labor and Non-Labor - Used to assign general ledger accounts to the Unallowable Pool. There is no need to assign general ledger accounts to a base because Unallowable Expense is not allocated to contracts. One set of Unallowable Cost Types is set up by default.

  • Excluded - If you would like to exclude a general ledger account from all direct costs, indirect pools, and unallowable accounts, you may do so by assigning the account to the Excluded Cost Type.

Pool Name

The Pool Name is entered in the Pool Setup Wizard by entering in a 12-character short title when you create the pool. For the pools that are automatically set up by default, the Pool Name is also automatically entered.

Pool Code

The Pool Code is automatically created when you create a new pool in the Pool Setup Wizard. For the pools that are automatically set up by default, the Pool Code is also automatically entered. The Pool Code is used to make it easier to identify pools on the reports.

Quickbooks General Ledger Account

The Quickbooks General Ledger Account is imported into GovBooks when you sync using WebConnect. All general ledger accounts are imported from Quickbooks including accounts that have been made inactive in Quickbooks. If there is an inactive account that you will not be using, you can either assign it to the “Excluded” column or delete it in Quickbooks and re-sync. If there are any transactions in the inactive account in Quickbooks, we recommend that you assign the account to a Cost Type so that your GovBooks reports are accurate.

Unassigned column

When a general ledger account is first imported from Quickbooks, it will be “Unassigned”. The check box in the “Unassigned” column will be checked, meaning that the general ledger account has not been assigned. To assign a general ledger account to an indirect pool, check the box in the column for the indirect pool. You will want to assign all of the general ledger accounts that are imported from Quickbooks. On the Account Assignment screen, you will only see general ledger accounts that are Cost of Goods Sold or Expense account types in Quickbooks.

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