Project categories can be considered as a ‘chart of accounts’ for projects.
Here the users can review the projects reporting (Print Project Balances/Category)
A category number is optional, however we recommend that categories are grouped like a chart of accounts.
The name assigned to a category corresponds to the text shown in the chart of accounts.
The type chosen is a the next level of category grouping by which categories can be summarized. Project categories can be divided into the following types:
|Total||Used when the ‘Total’ field needs to be filled in with a formula. The ‘Total’ can be compared to the total in a chart of accounts. The following notation should be used ‘Total from 10 to 40’. 10..40|
|Revenues and On-account invoicing||USED for INVOICING ONLY|
|Materials||Cost of goods sold|
|External work||Purchase of external services|
|Adjustment||‘Adjustment’ is used when writing the value of the project up or down in order that the total of all registrations entered are equal to those invoiced. Adjustments can be made in the journal and upon invoicing. See “Create Order.” It is important here to create a Category of this type and mark it as “default”.|
Summary of lines shown upon invoicing
Users can define what they wish to be ‘Auto aggregated’ on each type of project and which fields are to be aggregated.
Reference to inventory items.
The materials type references to the inventory items. If on-account invoicing is used, then an inventory item number must be set up for on-Account invoicing. This is the only way to show the value of your on-account invoices on your balance sheet and to get the correct balance on your operating statement upon final invoicing.
We recommended that inventory items and ‘Pay Types’ are selected on each invoice line.
Hours: Here we recommend that pay types are used.
Inventory Items (Materials): On-account and, if applicable, invoicing must be set up as Services Items since inventory is drawn upon purchase and sales/consumption for each project.
‘Invoice’ inventory items must be used when using ‘On-account invoicing’.
Select an item group under ‘Group’.
We recommend setting up one or several groups for the purpose of project invoicing.
This setup allows for specific revenue posting methods.
Miscellaneous setup on Project Categories
|Unit||Measurement unit should be entered according to the inventory item unit.|
|Default||If this is selecteed then this category will be used as a default where there are several options.|
|Invoiceable||Here users can select whether all transactions on this project category are billable or not.|
|Grouping||Must be set|
|Auto-Grouping||Must be set if you wish invoice lines to be aggregated. See below.|
|Per employee||Select here if you wish to have auto grouping selected by employee.|
|Per item||Select where whether you wish to set up auto grouping by inventory item.|
|Per payroll costs||Select here if you wish to use auto-grouping per payroll cost.|