The project type determines how Oracle Projects processes costs (expenditure items) for a project and provides defaults and controls for project entry and processing. You must associate each project type with a project type class:
Use the Indirect project type class to collect and track expenditure item costs and labor hours for overhead activities, such as administrative and overhead work, marketing, and bid & proposal preparation. You can also define indirect projects to track time off including sick leave, vacation, and holidays. Indirect projects are also referred to as administrative projects.
Use a Capital project type class to collect and track costs and labor hours for asset development activities that you plan to capitalize as one or more assets. See: About Capital Projects.
Use a Contract project type class to collect and track costs, labor hours, revenue, and billing for services performed for and reimbursed by a client.
Note: Only Oracle Project Billing supports contract projects. See: Overview of Contract Projects.
For audit trail purposes, you cannot change a project type after you create customer invoices for the project, or charge expenditure items, requisitions, purchase orders, or supplier invoices to the project.