1. Using Project Costing
  2. Considerations When Selecting Billable or Capitalizable Status for Transactions

Considerations When Selecting Billable or Capitalizable Status for Transactions

While creating transactions, you can specify the billable and capitalizable status of a transaction if the billable and capitalizable status attributes are enabled in the cost collection flexfield.

If you don't specify anything during the point of entry, then the application considers the billable and capitalizable details specified on the lowest task, transaction controls setup, and work type setup. To ensure that transactions are billable or capitalizable by default, you can specify the options for the entire project type or transaction controls setup options. You can also specify these options when you set up a task.

Billable Status of Transactions

The application considers the following specifications for the billable status of a transaction in the listed order if the project type of the project on the transaction is enabled for billing.

  1. If you specify the transaction billable status in the source application.

  2. If the option to derive the billable indicator from the work type is enabled, then the billable indicator on the transaction is determined by the work type.

  3. If the transaction control setup for the project or task indicates that the transaction is billable.

  4. If the task is billable.

  5. If the transaction has zero quantity, then the value of the profile option Cost Transactions with 0 Quantity Set as Nonbillable determines if the transaction is billable.

If the project type of the project on the transaction isn't enabled for billing then the transaction isn't billable.

Note: When the project type of the project on the transaction isn't enabled for billing and in the flexfield you specify that the transaction is billable, then the transaction is rejected.

Capitalizable Status of Transactions

The application considers the following specifications for the capitalizable status of a transaction in the listed order if the project type of the project on the transaction is enabled for capitalization.

  1. If the task isn't a retirement task.

  2. If the transaction control setup for the project and task indicates that the transaction is capitalizable.

  3. If the task is capitalizable.

If the project type of the project on the transaction isn't enabled for capitalization then the transaction isn't capitalizable.