Charges are used to track both billable amounts (such as client-payable project costs) and payable amounts (such as internal project expenses). Setting up Charge Items ensures that all financial aspects of a project — both incoming and outgoing — are properly recorded and managed.
There are two key aspects to Charges:
- Costs: Internal project expenses such as employee bonuses, salary allocations, or other payments made during the course of the project.
- Billing: Client-facing charges, such as project overhead (general project support costs that the client must cover), phase-based billing, interest charges, or discounts.
Examples:
- A bonus paid to a project team member would be recorded as a Cost.
- An overhead charge for project management support, billed to the client, would be recorded as Billing.
For further details refer to: