In the context of Job Costing, it’s essential to associate a project expense type with each new or existing project record. This selection guides NetSuite in determining which account to debit when posting time transactions for job-costing purposes. When you activate job costing, the system automatically generates two default project expense types: “Regular” and “Overhead.”
- The “Regular” expense type is linked to the Direct Labor account by default.
- The “Overhead” expense type is associated with the Indirect Labor account.
You have the flexibility to modify these default project expense types or create new ones to align with your company’s specific operational needs.
To create a new project expense type:
- Navigate to Setup > Accounting > Project Expense Types > New.
- Provide a name for the project expense type.
- In the Description field, offer a brief description of the projects this expense type should be used for.
- In the Account field, choose the account that NetSuite should debit when users record time transactions with this project expense type.
- Once you’ve filled in the details, click Save.
It’s important to note that every project record, whether new or existing, must have a project expense type selected within the Financial tab under Costing. Additionally, you can opt to assign a project expense type to service items.
Incorporating Project Expense Types into Service Items
If you wish to link project expense types with service items, you have the option to do so. When a time transaction is logged with a service item, the expense type specified on the service item takes precedence over the project’s expense type. However, this behaviour can be overridden if the “Apply to All Time Entries” box is checked on the project record.
To associate project expense types with service items:
- Go to Lists > Accounting > Items.
- In the Type field at the bottom of the list, select “Service.”
- Select the item you want to update and click “Edit.”
- Access the Accounting subtab.
- In the “Project Expense Type” field, choose the desired expense type.
- Save your changes.
This approach allows for more granular control over project expenses and ensures accurate accounting for your company’s project-related activities.