Fixed!! - Relation between Project Purchase Order Posting and Category Cost Accounts?

Hello my friends!

Sorry, it's been a while since I posted, as I have been away from AX and have been working on  Sharepoint, Reporting and BI. I have a few interesting posts on that coming soon.

Back to AX, I'm doing functional setup for AX Projects as our company is implementing Project Accounting module. I'm not so brilliant from a functional side and I have been stuck on this below issue...

Issue

We are planning to use Projects Module in Dynamics AX and we have setup Projects, sub-projects, category groups, categories and so forth..

We are going to use Investment type project for our purpose. For that we would be using Project Items and these would be set as Service Items in Inventory module and PO would be raised against them. So, technically these are project purchase orders which relates to a project and category and now when we invoice these PO's the transactions should be reflected against the item and project.

At the PO level ,everything looks fine and we can see the financial transactions generated for the posting accounts setup at inventory level. But when it comes to the associated project with the PO, we are not able to see the financial transactions generated for the category accounts. For e.g. we have a Category group called "Inventory" and we have Posting accounts setup at Cost, WIP-Cost Value and Cost-Item value, so when we post a PO we expect these costs accounts reflect the financial transactions,

I'm not sure how the relation between Project Accounting and PO Posting works. Are we missing any setups here? Hope I made my problem clear. Let me know if you need further information. Any help in the right direction appreciated.

Solution
Thanks a ton John!!!! Below is the solution to my issue.


Dilip,

I've noticed that this will occur if Post Financial Inventory is turned off on the Inventory Model Group of the item. If you have it turned on, it should go into the Purchase, Receipt account, out of the Inventory Issue account and hit the appropriate account determined by the selected Project Category. If not, it will just hit the Purchase, Consumption account. Hopefully this will help.

Hey John,

Mate, if you are reading this and you out here somewhere in Melbourne, lets catch up ..I owe you a beer mate you have made my life so easier :)..

Thanks to the power of social media and blogging, I got the answer within an hour I posted this issue on my blog. Just can't believe it!

BOM Overview and Types

BOM

BOM is one of the most important documents in a manufacturing company. Like the
recipe for a cake, it is a comprehensive list of all the ingredients required to
make or assemble a finished item. These ingredients are the components, parts
and raw materials that are used.

BOM Types

• Item - usually is purchased from outside source
• BOM - produced in-house and contains components to go for the finished product
• Service - represents a service e.g. hourly rates for services during manufacturing

Trade and Logistics - Sales order Types

There are 6 types of Sales orders -

• Journal
• Subscription
• Sales Order
• Returned item
• Blanket order
• Item Requirements

Journal
Sales orders of the type Journal resembles purchase orders of type Journal because they are also used as types of draft sales orders.Journals help when bringing data into the system that may not meet quality or other standards, as can be the case with data loads or data keyed by a new or temporary worker.A sales order of the type Journal does not affect stock quantities and does not generate item transactions nor will the quantity on the order line be considered in the Master scheduler.

Subscription
This kind of sales order is used for repeated sales of the same goods or services to the same customer. When a packing slip is updated, Microsoft Dynamics AX 4.0 generates a packing slip. When the invoice is updated, a new packing slip or invoice entry can be updated for the same sales line. The order never has an Invoiced status, only Open or Delivered.

Sales Order
This kind of sales order is used when the customer confirms that they want the order. When you create a new order, the type can be set to default to Sales order type in the parameters form depending on the client's business process.

Returned Item
This kind of sales order is used when receiving goods back from a customer. A Return Item Number is required for this kind of order and can automatically be assigned by Microsoft Dynamics AX 4.0 by the number sequence set up or manually assigned by the user.

Item Requirements
The Sales order type of Item Requirements is connected to the Microsoft Dynamics AX 4.0 Project Module. When you create your item requirements in the Project module, you create a sales order of the type Item requirements.

Trade & Logistics Puchase Order Types

Types of Purchase Order -

There are 6 Purchase order types:
Journal
Quotation
Subscription
Purchase Order
Returned Item
Blanket Order

Journal
The first Purchase order type is the journal. This type is used as a draft. It does not affect stock quantities and does not generate any item transactions and the quantity on the order line will not be considered in the Master scheduler. It can't be posted
EXAMPLE: A purchase order of the type Journal can be used when importing data by batch; in this manner, the purchase order can be reviewed and evaluated without affecting inventory, on-order, or other numbers.

Quotation
This kind of purchase order is used if the vendor has not yet committed to fulfilling the order if the company has not confirmed the purchase order. Quotation type generates an issue lot with the type Quotation in the inventory and optionally in the Master scheduler.
Unlike the Journal type, the Quotation makes an entry in the inventory transaction table. Making this transaction is what enables Microsoft Dynamics AX 4.0 to use this information for Master scheduling purposes.

Subscription
This kind of purchase order is used for repeated purchases of the same goods or services. When a packing slip is updated, Microsoft Dynamics AX 4.0 generates a receipt. When the invoice is updated for the receipt, a new packing slip or invoice entry can be updated for the same purchase line immediately or at some future date. The order will never be at an Invoiced status only Open or Received.

Returned Item
This type is used when you return goods to the vendor. A Return Merchandise Authorization (RMA) number supplied by the vendor is required when entering this kind of order

Blanket Order
This kind of purchase order is used if there is a contract with the vendor and you want to order from the contract. Typically, a company uses blanket orders to receive better pricing conditions as the blanket order quantity is bigger than on single purchase orders. You can create a Release order to release, order, and invoice items until the contract is fulfilled. Blanket orders do not affect stock quantities, do not generate item transactions, and are not included in Master scheduling. Release orders, issued from Blanket orders, do affect all the above.

Trade & Logistics

Some T & L notes :

• The Purchase order form opens, by default in the Simple view and shows the last purchase order created.
• Unit - The purchase unit is the unit of measure that the item is purchased. There is a close relationship between the purchase unit and the inventory unit. For example, the item may be purchased in kilos and stocked in grams.
• One-time supplier - For use of a supplier that is not already in the Vendors form.
• Invoice account - Invoice account is used if the account number of the vendor you send the invoice to and pay differs from the vendor with whom you place the purchase order.
• RMA number - The dialog box displays the Return Merchandise Authorization number (RMA number) when Return Item is selected in the Purchase type field. This number is provided by your supplier and is used for tracking a return item. The field is mandatory when the purchase type is Returned item.
• In this field group, specify the language setting for the purchase order. This affects the language that is used for item names and for printing external purchase order documents.

• EXAMPLE: Select an item and click Setup - Language - Item
  description. Select a language and enter the translation text. Create a new
  purchase order and in the Language field group select the language for which
  you created a translated text. Print, for example, a receipts list and the
  item's name is printed out using the foreign language text.