Cost Center Settings Required for Construction Contract Purchase Invoices
Automatic filling of cost centers in purchase invoices created from contracts depends on two settings: enabling cost center assignment for purchase invoices in the general accounting settings, and the Cost Tracking Level in the construction project. This guide explains each option and its effect.
Table of Contents
Cost Center Assignment in General Accounting Settings
| Option | Default | Effect |
|---|---|---|
| Sales Invoices | Disabled | A cost center column for each item in sales invoices |
| Purchase Invoices | Disabled | A cost center column for each item in purchase invoices; required for automatic filling from the contract |
| Requisitions | Disabled | A cost center column in requisitions |
| Allow Cost Center Distribution to Exceed 100% | Disabled | Allows a total of percentages greater than 100% |
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Note: Enabled transaction types will display an additional column to manually select a cost center for each line item.
Enabling the Setting
- Open General Accounting Settings.
- In Item-Level Cost Center Assignment by Transaction Type, enable Purchase Invoices.
- Save.
- Open the project from Construction Projects and choose the Cost Tracking Level, then save.
Choosing the Right Level
- Project: when following the cost of the project as a whole without detail.
- Tenders: when following the cost at the level of sub-tenders (such as construction and electrical works); the center of the direct parent sub-tender of the work item is used.
- Work Item: when following the cost of each work item separately.
- Create the required cost centers for the project or items from Cost Centers before creating invoices.
Common Problems
| Problem | Cause | Solution |
|---|---|---|
| The Cost Center Assignment section doesn’t appear | The Accounting app is not enabled, or no permission | Enable the app and request Edit General Settings |
| Field not shown: Cost Tracking Level | The project is not a construction project | Open the project from Construction Projects |
| The invoice has no centers despite enabling | No center exists for the level | Add the center from Cost Centers |
Assigning Cost Centers to the Project and Items
- Create cost centers from Cost Centers.
- Link the project to a cost center from its data in Construction Projects.
- For the Tenders and Work Item levels, make sure each sub-tender or work item has a cost center.
- Create a purchase invoice from the contract and check the filling.
FAQs
Does enabling the setting affect old invoices?
No.
Is the tracking level required?
No; empty means Project.
Is the setting for construction only?
No; it shows the column in all purchase invoices.
Can the level be changed after creating invoices?
Yes, and it affects new ones only.
Who edits the setting?
Whoever has Edit General Settings.
Should Sales Invoices also be enabled?
No; automatic filling from the contract is for purchase invoices only, and enabling sales invoices adds the column in sales invoices and has nothing to do with the contract.
What happens to current invoices when the setting is disabled?
The cost centers column for each item disappears from the purchase invoice form, and centers are not filled in new invoices from the contract.
Can a different level be chosen for each contract?
The level is set on the project, so all contracts on the same project use the same level.
Does the Tenders level need centers for sub-tenders?
Yes; the center of the direct parent sub-tender of the work item is used, and if it has no center, the line stays without a center.