Enabling Project Type

Select Project Type, and then select the type of project to enable:

  • Contract—A Contract project is work performed for a customer and the customer reimburses the company. A contract project generates revenue based on an underlying contract; costs are incurred and planned against it. The Contract project expenses, revenue, and billing can be for services performed and reimbursed by a client. Contract projects can be Time and Materials, Fixed Price, Cost Plus, and Other.

  • Capital—A Capital project is a long-term or short-term investment project undertaken for construction of a capital asset (such as buildings, dikes, and roads). If a project has a classification of Capital, you can do only expense budgeting for the project. You can, however, capture financial and non financial benefits of the project. The expenses for a Capital project are tracked as Construction in Progress (CIP) on the Balance Sheet while the assets are being developed. After a Capital project is placed in service and the assets are ready, you must reconcile the CIP assets with existing assets. You must enable Capital before you can enable Capital projects, and add a custom dimension in Capital called Project (the default dimension name in Projects). If you plan to rename and use a different name for the Project dimension in Projects, use that same dimension name in Capital.

  • Indirect—Also called internal projects, indirect projects have a cost impact but don’t generate revenue. For example, an IT project that creates a portal for the Human Resources team to track personal details of employees is an Indirect project. If a project is classified as Indirect, you can do only expense budgeting for the project. You can, however, plan financial and non-financial benefits of the project.