How Does ‘Expense Account Source = Project’ in Project Preferences Affect Normal Purchase Orders?

​@jvarughese23 - Here are my thoughts on your first point.  The Expense Account Source will dictate the default account to be used in Project Transactions associated with the underlying project and specified in the Default Cost Account box on the Defaults tab of Projects (PM301000) form.  PO’s don’t post any transaction to the GL and therefore don't post any Project Transactions (since they are linked to the GL).  The first place you’ll notice this, then, is the PO Receipt, which generates a Inventory Receipt linked to the GL.  Here is the Help topic and corresponding transaction. 

​@nickcerri32 

Thanks for the detailed explanation and reference — that makes sense for Project Drop-Ship scenarios.

However, my question is specifically about a normal Purchase Order (not Drop-Ship).

When I create a standard PO and link it to a Project and Task, the system still defaults the Expense and Accrual accounts from the Item’s Posting Class, even though in Project Preferences I’ve set Expense Account Source = Project and defined an Expense Account in the Project Task.

Could you please confirm if this is expected behavior for normal POs — meaning that the PO line will always follow the Posting Class — or if there’s any configuration that allows the Expense Account from the Project/Task to be used directly in this case (without customization)?

Thanks again for clarifying this distinction.

Hi ​@jvarughese23 , 

I want to understand when do you expect the project costs to be recorded. Would you please elaborate on your workflow? Do you use sales order and purchase receipts? 

Thank you!