Costlocker guide
  • GETTING STARTED
    • What is Costlocker and who is it for
    • Registration and Company setup
    • Quick start in 5 steps
      • 1. Add People
      • 2. Create Activities
      • 3. Create Clients
      • 4. Create Projects
      • 5. Time Tracking
    • What's next?
  • Projects
    • Managing a Project
      • Creating a Project
      • Creating a Project by Duplication
      • Auto ID
      • Tags
      • Responsible People
      • Discount on the project
      • Project Billing
      • Finishing a Project
      • Exporting the Budget
      • Locking a Project
    • Recurring project
      • Creating a Recurring Project
      • Working with a Recurring Project
      • Manually Duplicating a Recurring Project
    • Types of Budgets
    • Project Detail
      • Overview
      • Report
      • Alerts
      • Cost Estimate
      • Billing
      • Rates
      • Business Reports
      • Timesheet
      • Notes
    • Project Expenses
      • Project Expenses Report
    • Billable vs. Non-Billable Hours
  • People
    • Adding people
    • User Roles
    • Activating / Deactivating a Person
    • Salary
    • Bonuses
    • Calculating an Employee's Hourly Rate
  • Activities
    • Creating Activities
    • Activating / Deactivating an Activity
  • CLIENTS
    • Creating a Client
    • Activating / Deactivating a Client
    • Setting Default Client Rates
  • Time Tracking
    • Time Tracking
  • Timesheet
    • Daily Time Entry
    • Weekly Time Entry
    • Timesheet Views
      • Summary
      • Day by Day
      • Weekly
      • Live
  • Reports
    • Company Performance
    • Report of Finished Project
    • Workload
    • Business Reports
    • Project Expenses
    • Billing
  • Profitability
  • Your Company
    • Basic Overviews
    • Alerts
    • Overhead Costs
    • Fixed and Monthly Rate
    • Calculation of Overhead Cost per Worked Hour
    • Analysis Cost Allocation in projects
  • Settings
    • My Account
    • Desktop Application
    • Company
    • Groups
    • API
  • Applications
    • MacOS Application
    • Windows application
    • iOS Mobile Application
  • Integrations
    • Integration with Make
    • API
  • Subscription
    • Trial period
    • Switching to a Paid Account
    • Subscription Settings
    • Billing email adress
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On this page
  • Overhead Costs
  • Viewing Monthly Overhead Costs
  • How to Add an Overhead Cost?
  • How to Record a Change in Overhead Costs?
  • How to Handle Depreciation?
  1. Your Company

Overhead Costs

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Last updated 4 months ago

Overhead Costs

Every company has certain overhead costs that are not directly tied to a specific project—for example, office rent, car leases, software licenses, and similar expenses.

If we record these costs in Costlocker, they will be automatically allocated to all projects.

Viewing Monthly Overhead Costs

Navigate to Your Company -> Costs

This will display the Costs submenu and open the Monthly Overhead Costs tab.

How to Add an Overhead Cost?

On the monthly overhead costs view screen, click on the Add Overhead Cost button.

In the following form, fill in the cost name and select the type of cost you want to add. You have the following options:

Add Recurring Cost

A recurring cost repeats every month. Ideal for most expenses such as office rent, car leases, etc.

Add Cost

Add Income

If you have a one-time income that is not related to any project, you can enter it here—for example, selling old office equipment.

For our example, we will use the following overhead costs:

Item
From
Amount

Office

September 2024

$800

Small Equipment

August 2024

$80

Software

August 2024

$350

After saving, view the previous month. Here, we can see how much our monthly cost was for August (in our example, we are looking at August data):

Immediately here, we also see the automatically calculated overhead cost per worked hour.

You can read about how the overhead per hour is calculated in this article.

The overhead cost is then automatically calculated for the given month into the projects—see Rates.

It is always important to have as accurate numbers as possible in Costlocker to ensure the most precise results. It's better to have one "overhead" item in Costlocker that you update monthly rather than having many items that you update once a year.

How to Record a Change in Overhead Costs?

Click on the pencil icon for the particular Cost.

Click on Add Recurring Cost. After adding a new row to the form, you can change the date from which the cost will have a new amount, enter the amount, and confirm by clicking the Save button.

In the given example, the overhead cost for Small Equipment will $80 for the months of August-September. From October onwards, it will be $100.

What is the purpose of the end date?

You can use the end date for a cost if it is no longer relevant (e.g., you terminate a car lease).

How to Handle Depreciation?

Imagine that in September 2024, you purchased office equipment worth $20,000. If you enter it entirely as a one-time cost in September 2024, your overhead cost for that month will disproportionately increase, even though you will be using this equipment in the following months.

In such a case, you can spread the amount of $14,400 over a longer period. In our example, we decided to "depreciate" it over 2 years—in other words, we chose to use the equipment from September 2024 to August 2026 (i.e., 24 months) and add $600 to costs each month.

Costlocker will then correctly display the total amount of $14,400 i.e., the entire cost.

Clients often automatically upload overhead costs to Costlocker from Google Spreadsheet using Integration with Make. You don't have to make any manual interventions - it's enough to have accounting data in Google Sheets, for example.

Here you have a one-time cost. Ideal for expenses like a Christmas party

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Overhead Costs - select
Overheads view
Form for adding overhead costs
Overhead cost-edit