Set up project item type defaults

Use the Defaults tab to set the default settings for the project item type; such as status, units of measure, billing method and time and materials pricing rules.

These defaults are used each time a project item is added to a project. You can override these when creating or amending projects.

To set the defaults

Open: Project Accounting > Utilities > System Setup > Project Structure Settings | Project Item Type.

1. Click Add or select an item type and click Edit.
2. Select the Defaults tab.

3. Enter the following default information:

   Status - Default

   Select the default status to be used for a new item of this type.

   Changing this setting

   You can change this setting at any time as projects items that are subsequently created will be affected.

   Unit of measure - Cost (project items) only

   Select the default unit of measure to use when creating a new project item.

   Changing this setting

   You can change this setting at any time as projects items that are subsequently created will be affected.

   Time & materials pricing rules.

   • Timesheets: Set the default pricing rule for timesheets. Choose from the following rules:

     • Charge rate. The Value to bill is calculated from the charge rate selected on the timesheet.
     • Cost. The Value to bill is calculated from the total cost (direct costs and uplift) entered on the timesheet.
     • Non-chargeable. The Value to bill will always be set to 0 regardless of the charge rate selected on the timesheet.
     • Any charge rate type set up in the system. The charge rate selected on the timesheet must be the same one selected here otherwise the timesheet cannot be saved. That rate will be used to calculate the Value to bill.
     • Any T & M pricing rule that you have set up in the system. The Value to bill will be calculated according to that rule.

   • Stock issues: Set the default pricing rule for project stock transactions. Choose from the following rules:

     • Standard price. The Value to bill is the price for this item as set up on the standard price band.

       Pricing of items inclusive of VAT

       The Project Accounting billing system is independent of the Sales Order Processing module. Therefore, the standard price time and materials pricing rule will always use the standard price for the stock item, irrespective of whether it is inclusive or exclusive of VAT.

       Please take note of this, to avoid charging VAT twice on items that are priced inclusive of VAT in the Project Accounting billing system.

     • Cost. The Value to bill is calculated from the total cost (direct costs and uplift) recorded for the stock issue.
     • Non-chargeable. The Value to bill will always be set to 0 regardless of the price or cost of the stock issue.
     • Any T & M pricing rule that you have set up in the system. The Value to bill will be calculated according to that rule.

   • Other costs: Set the default pricing rule for other costs. Other costs apply to everything apart from timesheet and stock transactions, such as purchase invoices and expense claims.

     • Cost. The Value to bill is calculated from the total cost (direct costs and uplift) recorded for the transaction.
     • Non-chargeable. The Value to bill will always be set to 0 regardless of the value of the transaction.
     • Any T & M pricing rule that you have set up in the system. The Value to bill will be calculated according to that rule.

   Changing this setting

   You can change these settings at any time. This does not affect existing projects but the changed settings will be used as defaults for any project item of this type created subsequently.

   Reporting preference - Overhead Project Item Type

   Select this to treat the project items of this type as an overhead. This means that the costs will affect the net profit rather the gross profit of your projects.

   An example of an overhead is sickness or absence. Overheads are shown separately on the Profitability Analysis enquiry.

   Changing this setting

   You can change this setting. This will affect existing projects that contain project items of this type. It affects how previous and subsequent costs are used to calculate profitability.