Projects are associated with general ledger accounts and are used for reporting purposes. In many of the transaction windows, you can select a project to associate with a particular general ledger account.
When you report on a project, all accounts associated with that project appear on the report, regardless of the transaction origin (accounts payable, general ledger, etc.), with a project summary.
You can define whether a general ledger account requires a project number. If the account requires a project, the transaction will not be valid until a project number is selected. Also, since project numbers have start and end dates, the transaction will not be valid if the current date is outside the start-end date range.
Projects are defined in Project Maintenance.