Project Accounting activity

Activities are the processes or procedures that produce work. Cost objects (products, services, customers, and so on) are the reasons for performing the activity. Activities and cost object activities are used synonymously in Project Accounting. Direct costs are posted to activities, and indirect costs are allocated to activities that are based on activity drivers.

Activities are grouped or organized by activity levels. There are two types of activities: "posting allowed" and "summary only." Use posting level activities to budget and maintain all posted transactions. Summary activities or macro activities combine information and balances from lower level activities for reporting and inquiries.

When you add or change a requisition line distribution for a specific activity, the activity budget is checked. An error message is displayed if both of these conditions are met:

• The activity is assigned to an activity group for which a budget is defined
• The distribution will result in exceeding the activity budget

This message is only displayed before the release of the requisition. If no activity budget overage will result, a budget commitment record is created when you release the requisition.