Cost categories used in Production control and Project management accounting
Some types of production work can apply to project time estimates and reporting. This article provides information about the cost categories that you must define for these types of production work for production and project purposes.
Some types of production work can apply to project time estimates and reporting. In this case, a cost category is required for production and project purposes. When a cost category is used in production and projects, additional project-related information must be defined. For example, the hourly costs that are associated with projects can differ from the hourly costs that are associated with production. You can use the Cost categories page to define a cost category that is used in Production control and Project management accounting.
Note: Cost accounting has a Project categories page, but this page has no relationship to the functionality that is described in this topic. When you use a cost category in projects, the Cost categories page has additional tabs that show additional project-related information. This information includes the category group, a line property, and ledger accounts that are assigned to the cost category.
- The cost category must be assigned to a category group that supports a transaction type of Hours.
- The line property indicates default information about how reported time can be charged to a project.
- Typically, the ledger accounts that are related to costs and sales are defined for the category group that is assigned to the cost category. However, specific accounts can be defined for an individual cost category.
Additional buttons on the Cost categories page let you access project-related information about a selected cost category. For example, you can view project-related transactions, define employees or projects, define hourly costs and sales prices, and view reports.