The following terminology is used on these web pages and in the Job Costing module:
Items that are Service Items are classified as 'time' in the Job Costing module. You might have several Service Items representing different types of work (e.g. initial analysis, installation and training), which might be charged out at different rates.

Time spent working on a Project can be registered using Time Sheets and Activities (when the work has been carried out by your own staff) and using Purchase Invoices and Expenses (when the work has been sub-contracted).

Time cannot be registered against Projects using Sales Orders.

Materials and Purchases
Items that are Plain Items can be treated either as 'materials' or as 'purchases' in the Job Costing module. This distinction is made on the 'Pricing' card of each Item, using the Treat Item as Material on Project check box. Typically, materials and purchases will include the miscellaneous products and services needed to complete Projects, such as mileage, paper, and postage or delivery.

Materials and purchases can be registered against Projects using Time Sheets (providing the Allow Plain Items on Time Sheets box in the Project Item Handling setting has been checked) and using Purchase Invoices and Expenses. Activities cannot be used for this purpose.

The difference between materials and purchases is that, subject to the Project Item Handling setting, purchases can be included in Sales and Purchase Orders created from the Project Budget screen and materials cannot.

Stocked Items
If it is necessary to supply Stocked Items as part of a Project, you must do so by entering a Sales Order and issuing a Delivery from that. This ensures that the stock levels are adjusted accordingly and that any necessary cost accounting transactions are registered in the Nominal Ledger. The Sales Order should be connected to the Project using the Project Number on the 'Del Terms' card. If the Customer returns a Stocked Item, this should be dealt with in the usual way, using the Returned Goods register.

Note: if you want to be able supply Stocked Items as part of a Project, switch on the Stocked Items Only On Sales Orders option in the Project Item Handling setting.

Structured Items
Structured Items are treated as Stocked Items in the Job Costing module, so the comments above apply.