What Is an Internal Project?

Published: 1 June 2026

Audience

Admin
Controller
Project Manager

Objective

Understand what an internal project is in PSOhub, how it differs from a standard client project, and when to use one to track internal work and costs.

Introduction

Not all project work is delivered for external clients. Teams frequently need to track time, manage tasks, and monitor costs for internal activities, such as onboarding new staff, running internal training, developing internal tooling, or managing overhead.

In PSOhub, an internal project gives you a structured way to manage this kind of work. It uses the same project framework as a client engagement but is flagged as internal, which affects how it is handled in reporting and whether it appears in client-facing outputs.

What Makes a Project Internal?

When creating a project in PSOhub, you can mark it as an internal project using the Internal Project toggle. This flag tells PSOhub that the project is not associated with a paying client and is not intended to generate revenue.

An internal project behaves like any other project in PSOhub. You can:

Create contracts, budgets, and plans
Assign team members and project roles
Track time and expenses
Monitor costs and utilization

The key difference is that internal projects are excluded from client-facing invoicing workflows and are segmented separately in financial and utilization reporting.

When to Use an Internal Project

Use an internal project when you need to track work or costs that are not billable to a client. Common examples include:

Staff onboarding and training — track hours spent getting new team members up to speed
Internal tooling and development — manage work on systems, templates, or processes used by your own team
Overhead and administration — capture non-billable time that affects capacity planning
Pre-sales and proposals — track effort spent on pitching or scoping work before a deal is won
Team initiatives — manage internal projects like process improvement, knowledge base development, or team events

By logging this work in PSOhub, you get a complete view of where your team's time is going, not just the hours spent on client work.

How Internal Projects Affect Reporting

Marking a project as internal changes how it appears in key areas of PSOhub:

Invoicing — internal projects are not available for standard client invoicing. No invoice can be generated against them.
Utilization reporting — time logged to internal projects is tracked separately, giving you visibility into the split between billable and non-billable effort across your team.
Financial reporting — internal project costs appear in cost reporting but are excluded from revenue and margin calculations associated with client work.

This separation keeps your client project data clean while still giving you full visibility into internal resource consumption.

Internal Projects and Resource Planning

Internal projects are fully supported in PSOhub's resource planning module. You can include internal projects when planning capacity, ensuring that non-billable work is accounted for when assessing team availability.

This is particularly useful for accurately forecasting utilization. If a team member is assigned to an internal project for part of a period, that commitment is reflected in their available capacity for client work.

Next Steps

✅ Create your first project in PSOhub
Follow the steps to create a project and configure it as internal from the start.
How to Create a Project in PSOhub

✅ Track time against an internal project
Learn how to log time entries against internal projects to capture non-billable effort.
How to Book Time on a Task

✅ Understand utilization and resource planning
See how internal projects factor into your team's capacity and utilization reporting.
Utilization Report: How to Create a Performance Dashboard in PSOhub