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. You set up a promotional
project when you want to begin tracking expenses related to the pursuit of a contract (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.