A value-added pool may be used to exclude certain costs from the G&A base which are instead used to allocate overhead expenses. For instance, a common value-add pool is Subcontractor and Material Handling in which case direct subcontracts and materials are excluded from the G&A base and included in the value-added base. GovBooks allows you to create as many as 10 value-added pools.
To create a value-added pool, select “Yes” to the question, “Is there a value-added expense pool?”. You may then complete the additional information. Next, you will go to the Account Assignment screen and select the general ledger accounts associated with the value-added pool and the value-added base.