What is an Activity Group?

You organize activities into logical groupings called activity groups. Each activity must be assigned to an activity group. An activity group lets you group like activities together. When using the Project Accounting subset, you really only define an activity group because it is requirement of the application; an activity group is not as helpful a tool in the subset as it is when using the full-blown application.

Example

LGE will be using General Ledger-only activities to track costs for a special project: implementing a new software package. They only want to track total costs, and won't be breaking the costs down for detailed analysis, so using a General Ledger-only activity provides a straight forward method of tracking.

They defined an activity called Implementation and they assigned that activity to an activity group, also called Implementation. Now they assign the Implementation activity to all transactions associated with putting the new software package in place.