I am working with government contractors and need a program to accommodate cost pools and OH allocations. Any QB product suggestions? What about the new QBOA?

I need a QBO solution that can handle:

* Multiple cost pools (which I think can be handled by a combination of a well designed CoA and classes)

* OH allocations that are flowed down from each cost pools to either some or all of the other cost pools. Each cost pool rate is determined by the expense as a percentage of a base (total direct labor, total material purchases, total indirect and direct labor, etc.), and each is applied differently based on the original cost pool and the cost pools being allocated to.

I do not want to have my clients doing the cost pool allocations manually because it is very complicated and leaves too much room for error. I also don't want to leave QBO if I don't have to...trying to avoid solutions from Deltek and Microsoft (typical in government contracting accounting) because they are not affordable for the clients I have.

Answer

Hi there, Kim Dunn.

The option to allocate overhead that is flowed down from each or all of the cost pools is unavailable in QuickBooks Online. You can only set up overhead and cost pools as a class. Then, record them as a regular financial activity and use a journal entry to allocate to the appropriate class.

You might want to visit our Intuit App Store. You can look there for a third-party application compatible with QuickBooks Online (QBO) that can help you track multiple cost pools and overhead allocation into your account.

Just check out this link for the third-party applications: https://apps.intuit.com/app/apps/home. You can contact their technical support if you have any questions about integration.

Let me know if you need anything else. Thanks!

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