Defining a capital project
A capital project can be defined in either the Budgets or Projects TSI.
If you only deduct forecast amounts from your budgets, it is sufficient to use the Budgets TSI to manage capital projects.
If you also want to deduct contract line amounts and order costs from your budgets, the Work Orders and Contracts TSIs are required as well.
Procedure
1. Go to the Projects selection level in the Budgets or Projects TSI.
2. On the action panel, click Add.
3. Complete the fields in the data panel. For more information, see Project fields. When defining a capital project, a couple of important settings must be selected that will influence the entire project. The settings are as follows:
◦ Budget type – You can select whether your project is a capital expenditure (CapEx) or operational expenditure (OpEx) based on the purpose of the project. The type of financial year is determined by the type of project selected. For projects involving capital expenditure, the financial year is not applicable. However, for projects related to operational expenditure, the entire project must be accounted for within a single financial year.
◦ Costs excl. VAT – You can choose whether your project includes or excludes VAT. By default, the setting from System Settings > General is applied. However, this default can be overridden for individual capital projects.
The main level of the capital project is used to link a project and cost group structure, ensuring that budgets can be properly defined. The project can be further expanded by creating a substructure of capital projects, allowing up to three hierarchical levels. However, it is not possible to link projects of other types to a capital project.
4. Click Save.
You have added a new capital project.
Budgets can be updated through various elements, such as orders, contract lines, and forecasts.