---
title: "Manage Overhead Costs"
slug: "manage-overhead-costs"
description: "Enter an overhead amount on an AP invoice to distribute costs proportionally across all line items using the Adjust button."
updated: 2026-06-16T22:51:19Z
published: 2026-06-16T22:51:19Z
canonical: "docs.restaurant365.com/manage-overhead-costs"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Manage Overhead Costs

This article covers using the Overhead field to adjust costs on [AP invoices within the Inventory app](/doc/docs/ap-invoices-overview-security) and [classic AP invoices](/doc/docs/ap-invoice-record).

The **overhead adjustment** feature allows users to adjust item costs to account for any overhead costs such as freight and shipping.

To do this users can enter any overhead amount into the added **Overhead** field on the AP invoice form. The added **Adjust** button will use the overhead costs and the invoice total to adjust the cost of the individual items. Once adjusted, a weighted percentage of the item cost (each amount x quantity) will distribute per line item to spread the overhead costs across all items on the invoice.

> [!WARNING]
> The Overhead field is not intended for recording tax amounts. Entering taxes as overhead costs will result in incorrect financial data. Tax amounts should be recorded separately using the appropriate GL account.

> [!NOTE]
> This is only available for users with the Overhead feature enabled in their database. Please contact your CSM to learn more.

---

## Manage Overhead Costs

To manage overhead costs, follow these steps:

*Click steps to expand for additional information and images.*

****1)** First open a new or existing AP invoice form.**

**Inventory AP Invoice**

![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-XMB15SVS.png)

**Classic**

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-bq0vl079.png)

****2**) Enter the correct overhead value into the **Overhead** field.**

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-0oq9nkca.png)

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-ltq17tkm.png)

****3)** Ensure that the overhead value is added to the **Invoice Total** on the Inventory invoice form or the **Document Amount** on the classic invoice.**

Users may be notified that the 'invoice overhead does not match the details overhead' or that their is 'Unassigned overhead = #.' In the example below, $60 has been added to the $210 for a new Invoice Total of $270.

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-25bl5vrd.png)

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-ocry3um1.png)

****4**) Once the Invoice Total reflects the total overhead costs, click **Adjust**.**

> [!WARNING]
> If the AP invoice details lists an Overhead line item, this item should first be removed before adjusting costs.

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-fbsyh5if.png)

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-jx15bu7u.png)

****5**) In addition to clearing match total notices, the adjustment will update the invoice total as well as the cost values in the **Overhead** and **Total** columns at the item level.**

These adjusted values are the weighted percent of the item cost relative to the total invoice cost.

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-hgl2mkre.png)

![A screenshot of a computer Description automatically generated](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/manage-overhead-costs-image-akqrh701.png)