Configure accounting for internal projects
Internal projects allow companies to track cost that is related to activities that aren't being billed to a customer. Examples of internal projects include:
- Developing a product, such as a mobile app, and tracking the cost that is associated with the development.
- Managing presale time and expense. This presale internal project can be converted later to a billable project if the quote is won.
Any project that is not associated with a contract in Project Operations is treated as internal. Project cost and revenue profiles aren't used to determine accounting rules for the project. Internal project cost is always posted by using profit and loss principles. Ledger accounts for postings are defined on the Ledger posting setup page.
- Time transactions are posted by debiting the Cost account and crediting the Payroll allocation account.
- Expense transactions are posted by debiting the Cost account and crediting the Offset account for expense.
After transactions are posted to the project, if the project is associated with a project contract, the system reverses all accumulated transactions and creates new billable transactions. The billable transactions follow the accounting rules that are defined in project cost and revenue profile.