Set up BCO Step-by-Step

Step 1. Assess the Arranged Price Structure

With or without cover, with or without other percentages, what is the commercial percentage? Assess the price structure set up in MKG, which can be found in the administration settings. Advice settings 'Operations':

• Recommended Operation Rate: preferably select the option 'Billable Rates'.
• Cost Price: preferably select the option 'Net + Coverage'.

Step 2. Set the Workable Days

Fill in the BCO Administration table the days and divide them over the year.

• Take working days, vacation, reduction of working hours, public holidays into account.
• Hours per day: a 40-hour working week is 8 hours a day, a 38-hour working week is 7.6 hours a day.
• Workable days: the total amount of hours an employee could work in an entire year.

Step 3. Assess the Hours and Costs

Hours and costs form the basis for determining budgets. Use the Hour Analysis Employees (8005) dashboard for the hours (no overtime); use the Ledger Account Result Comparison (8011) dashboard for costs.

Step 4. Add the Budgets

In the Ledger Budgets module add budgets to ledger accounts and divide them over the periods of the fiscal year. This can be done linearly, based on realized last year or based on BCO working days. Cost centers can be used for the allocation.

Step 5. Determine the Costs of the Employees

Does the employee's hourly rate still match his function group? This becomes clear in the table BCO Employee Labor Costs, once the labor costs per employee have been entered.

• Select the employees to be included in BCO and add them. Include any vacancies.
• For each employee, enter the 'Labor Costs' and 'Hours' groups in the Detail. Enter Age Hours and Unplanned Absence for each employee. Use the memo field for clarification.
• After completing the BCO Occupation Plan (see Step 7), the 'Assigned Hours' follows.
• Adjust the function group if there is a difference (in €) between the used function group and the calculated function group.

Step 6. Budget the operations

By budgeting all your direct and indirect operations in the table BCO Operation Budgets, it becomes clear how many hours the machines can run and how many man-hours are needed.

• Select the operations to include in BCO and add them. Include any new machines (operations).
• Enter the machine hour budget per operation and divide it (linearly or based on BCO working days). If necessary, determine the required surface area of the machine.
• The man/machine ratio is defined in the table Operations
• Use the memo field for clarification.

Step 7. Fill in the Occupancy and Coverage Plan

The module BCO Occupancy and Coverage Plan contains two matrices. First you link all employees to all operations in the Occupancy Plan on the basis of the hours and labor costs, in the Coverage Plan you then divide the other operating costs over the operations. This way all your indirect hours and costs are covered by your direct operations.

BCO Occupancy Plan

• Add operations using the Field Selector.
• Allocate the man-hours to the operations; the remaining hours should go to 0.
• If necessary, adjust the indication of the function group used for the operation and the calculated function group at the bottom of the Occupancy Plan.

BCO Coverage Plan

• Add operations using the Field Selector.
• Provide a description of the costs and enter the annual budget.
• Allocate costs as specifically as possible and divide them among the operations.
• The applicable hourly rate and the calculated hourly rate are stated at the bottom of the Coverage Plan.
• If set up, the ‘billable hourly rate total’ is visible. Adjust, if necessary.