You can create the following project types in the section. The main difference between these project types is the invoicing setup.
Choosing a
project type
The choice of a project type depends of the purpose of the project.
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Project type |
Description |
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Time-and-material projects are invoiced as work progresses based on the consumption of hours, expenses, items, or fees on the project. This project type is mainly applied to projects where costs can be matched with the revenue on each transaction and the project is invoiced as work progresses. |
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Fixed-price projects are on-account accounts that are invoiced according to a payment plan based on the project contract. A fixed-price project can be posted according to the completed contract method, or according to the method when posting the estimate. |
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Investment projects are projects with no immediate earnings. Only costs of items, hours, and expenses can be registered on an investment project and the estimate feature is applied to track and control costs. Costs registered to an investment project are entered on profit and loss accounts and transferred to work in progress (WIP) accounts when estimates are posted. When the project is completed and the project is eliminated, the WIP value is transferred to a fixed asset, a ledger account, or to a new project. Investment projects can be set up with or without a maximum capitalization limit. Transactions on investment projects are excluded from the , , and forms. |
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Like the time project listed below, the cost project is an internal project. Hours, expenses and items can be registered to cost projects. Transactions on cost projects are posted to profit and loss accounts and cannot be capitalized to balance accounts. Transactions on cost projects are excluded from the , , and forms. |
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An internal project is financed by your company. There are no customers for this project and it cannot be invoiced. Usually transactions on internal projects are non-chargeable. Transactions on internal projects are excluded from the and forms. |
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The time project is an internal project; that is, there are no customers for this project and it cannot be invoiced. Only hour transactions can be registered on a time project. Time projects are applied to total the number of hours consumed on a task or a project. Contrary to transactions on the project type, transactions on a time project are never posted to ledger accounts. Examples of time projects are registration of illness or holidays. Transactions on time projects are excluded from the , , and forms. |
Topics about
project types
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Topic |
Description |
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Provides conceptual information on both time and material projects and fixed-price projects. |
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Provides conceptual information on sub projects and their IDs in relation to parent projects. |
