Create the project categories to be linked to the subcontract category group.

When you create a project category:

• Use a shared category as created before.
• Use a subcontract category group as created before.
• Make sure that on the Project FastTab, the Subcontract is set to Yes and the Transaction type is set to expense automatically.

For more information, refer to Create categories for projects.

Standard procedure

1.	Go to Project management and accounting > Setup > Categories > Project categories.
2.	Click New.
3.	In the Category ID field, enter or select a value.
4.	Expand the Project section.
5.	In the Category group field, enter or select a value.
	Note: The subcontract flag will switch to Yes upon selecting the category group set as a subcontract.
6.	Select Yes in the Active in journals field.