Project Charge Types and Planning Expenses and Consultants

Projects have one of three charge types: Regular, Overhead, or Promotional. The project charge type determines the types of expenses and consultants for which you can enter planned amounts for a project.

When you create a project in the Projects hub, you assign a project charge type to it to indicate how labor and expense costs are charged to the project. The following describes the three charge types:

• Regular - A regular project is a project that produces revenue. Typically, each of the projects for which your firm is receiving compensation is a regular project. Charges to regular projects are direct labor, direct and reimbursable expenses, and direct and reimbursable consultants. Regular projects accumulate transactions for the life of the project.

  For regular projects, you can enter planned amounts for direct and reimbursable expense types and direct and reimbursable consultant types.

• Overhead - An overhead project is a project that does not produce revenue. Typical overhead projects include Marketing, Administration, and Professional Development. Charges to overhead projects are indirect labor (for example, accounting and administrative time) and all indirect expenses (for example, rent and utilities). You can then distribute these costs to your regular projects.

  Overhead projects accumulate transactions for the current year only. At year-end, overhead projects are zeroed out and begin accumulating transactions again for the new year.

  For overhead projects, you can enter planned amounts for indirect expense types. You cannot plan consultants for an overhead project.

• Promotional - A promotional project is a type of overhead project that overlaps fiscal years. Promotional projects accumulate costs associated with projects that have not yet reached the contract stage. Do not confuse promotional projects with opportunities. You cannot charge expenses to an opportunity. You set up a promotional project when you want to begin charging expenses to an opportunity (for example, when you start developing a project proposal or after you win a project and begin negotiating contract terms with the client).

  Unlike for other overhead projects, promotional projects are not zeroed out at year-end. Promotional projects accumulate transactions for the life of the project.

  For promotional projects, you can enter planned amounts for indirect expense types. You cannot plan consultants for a promotional project.