Transaction types are used to group project transactions, make registration of project transactions easier, and strengthen cost-tracking within a project.

You must assign a transaction type to a category group when you create the category group in the Category groups form.

Any categories that are created within a category group inherit the transaction type of the category group. Project categories are used to further group project transactions, which makes the transactions more precise. Project categories are created in the Categories form.

You can create as many categories and category groups as are needed for tracking project costs and for defining the cost types that are relevant for the company and the project types.

There are five predefined transactions types:

• Fee: All fixed revenues that are linked to a time and material project, such as a bonus for the early delivery of a project blueprint plan and budget.

• Fee - Subscription: All costs that are linked to subscriptions and subscription transactions, invoicing, and accrual of subscription transactions.

• Hour: All costs that are linked to the financial compensation of project employees, such as the 10 hours a project employee has spent working on the project.

• Expense: All costs that are linked to the project that is not Itemor Costs per hour., such as the travel expenses (mileage and air fare costs) that are encountered during the project.

• Item: All costs that are linked to item purchases, resale and actual item consumption for the project, such as when the customer purchases a new computer through the company for the project.