Set up project item type nominal defaults

Use the Nominal Defaults tab to set the default nominal codes for the project item type.

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 nominal 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 Nominal Defaults tab.
3. Enter the following default information:
Default nominal code

Specify the default nominal accounts for expense and revenue postings.

• Expense: Select the default expense nominal code. This is the nominal account that expense transactions will be posted to.

• Revenue: Select the default revenue nominal code. This is the nominal account that revenue transactions (such as invoices) will be posted to.

  Changing this setting

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

WIP

Note: Only applicable if WIP is enabled.

The work in progress (WIP) account, used to gather project costs for the duration of the project, is enabled on the Project Accounting Settings | Posting tab when you set up nominal accounts for postings. You can also specify on the Posting tab the default options for cascading the WIP nominal account through the project structure. The first level of cascade is the project item type.

If you are adding a project item type

Use Specified

If this was selected on the Project Accounting Settings Postings tab, this will display Yes and you will not be able to amend the setting here. If not you can select it here. Note: If you are adding a project item type, select the Use Specified check box. If you are editing a project item type, click Settings to select Use Specified. Select Use Specified to select a nominal account with cost centre and department. This nominal code with cost centre and department along with the Use Specified setting will be set on all items below this in the project structure and you will not be able to change it at a lower level. Changing the setting If you select Use Specified after WIP has been in use, the WIP account set on items below will be overwritten with the WIP account with cost centre and department set here. You will lose any settings you have made manually at the lower levels in the project. The Use Specified setting will also be set to Yes on lower levels in the structure. If you clear Use Specified after it has been in use, the cost centre and department will be removed from items lower in the project structure but the nominal account will remain. The Use Specified setting will be set to No on lower levels in the structure.

Nominal account

If Use Specified was selected within Project Accounting Settings | Posting, then this will show the nominal account with cost centre and department specified on the Posting tab and you will not be able to amend it here. If not, you can select a Nominal account here. Note: This must be a Balance Sheet account.

If you are editing a project item type

1. Click Settings.
2. Make your nominal selection.

Use Specified

If this was selected on the Project Accounting Settings Postings tab, this will display Yes and you will not be able to amend the setting here. If not you can select it here. Note: If you are adding a project item type, select the Use Specified check box. If you are editing a project item type, click Settings to select Use Specified. Select Use Specified to select a nominal account with cost centre and department. This nominal code with cost centre and department along with the Use Specified setting will be set on all items below this in the project structure and you will not be able to change it at a lower level. Changing the setting If you select Use Specified after WIP has been in use, the WIP account set on items below will be overwritten with the WIP account with cost centre and department set here. You will lose any settings you have made manually at the lower levels in the project. The Use Specified setting will also be set to Yes on lower levels in the structure. If you clear Use Specified after it has been in use, the cost centre and department will be removed from items lower in the project structure but the nominal account will remain. The Use Specified setting will be set to No on lower levels in the structure.

Nominal account

If Use Specified was selected within Project Accounting Settings | Posting, then this will show the nominal account with cost centre and department specified on the Posting tab and you will not be able to amend it here. If not, you can select a Nominal account here. Note: This must be a Balance Sheet account.

Note: Cascading from the project item type applies when you have not selected Use Specified.

Cascade

Select the Cascade options for the nominal account. You can cascade the WIP nominal account to: Project Items You can choose to cascade the nominal account to project items. If you do, the WIP nominal account is set on all project items. Project Items within Projects If you select Project Items, you can also choose to cascade to project items within projects. If you do, the WIP nominal account is set on all project items within projects.

3. Click OK.

Changing the setting

If you change the WIP code, any new costs use the new WIP code. Any existing costs that have not been finalised will post with the WIP code that was there previously as it is held on the cost transaction.