An overhead rule tells Job Margin 365 how much overhead to charge a work order when it is completed. Exactly one rule is applied per work order, chosen by how specifically it matches, and if no rule matches the overhead is zero.
Create a rule
- Go to Setup → Overhead Rules and select New.
- Enter a Name, for example "Shop overhead — 12% of labor".
- Choose a Method and enter the matching Amount / Rate:
| Method | What the amount means | Overhead charged |
|---|---|---|
| Flat per work order | A currency amount | The amount, once per work order |
| Percent of labour | A percentage | Labour Cost × amount ÷ 100 |
| Per labour hour | A currency amount per hour | Amount × total labor hours on the work order |
- Set Active to Yes.
- Optionally scope the rule with Service Territory, Work Order Type, or Agreement. Leave all three blank for an organization-wide default.
- Optionally set a Priority to break ties (see below). Save.
The Percent of labour method uses the burdened Labour Cost bucket, so with a labor cost of 384 and a rule of 10%, overhead is 38.40.
How a rule is chosen
When a work order is completed, Job Margin 365 finds every active rule whose set scopes all match that work order. A blank scope matches anything.
- The most specific matching rule wins: a rule with two scopes set beats a rule with one, which beats the organization-wide default.
- If two matching rules are equally specific, the one with the lower Priority number wins.
- Only one rule is ever applied. Rules do not stack.
Because overhead is allocated at completion, changing a rule affects work orders completed after the change. To apply a new rule to an already-completed job, re-complete that work order (see Read a work order's margin).
Who can edit overhead rules
Creating and editing overhead rules requires the Job Margin 365 - Setup role. Other roles can view them.