Choose your path Increase your proficiency with the Dynamics 365 applications that you already use and learn more about the apps that interest you. Up your game with a learning path tailored to today's Dynamics 365 masterminds and designed to prepare you for industry-recognized Microsoft certifications.
Visit Microsoft Learn
2020 release wave 1 Discover the latest updates and new features to Dynamics 365 planned through September 2020
Release overview guides and videos Release Plan | Preview 2020 Release Wave 1 Timeline
Ace your Dynamics 365 deployment with packaged services delivered by expert consultants. | Explore service offerings
Connect with the ISV success team on the latest roadmap, developer tool for AppSource certification, and ISV community engagements | ISV self-service portal
The FastTrack program is designed to help you accelerate your Dynamics 365 deployment with confidence.
FastTrack Program | Finance TechTalks | Customer Engagement TechTalks | Upcoming TechTalks
I have a customer who is into Construction and they are using AX.
Project Budget is defined for each Project Category. I have a project category called "Steel Reinforcement" of Type Hour.
I have defined budget during my budget. Now, against this budget, I may use my own manpower or some of the work I have to hire from a manpower supplier.
For hiring a rented, I use the procurement process. Here, I need to have a purchase agreement with the supplier.
Based on this agreement, vendor will supply manpower and my work will continue. Please note, if I use own manpower, I do a timesheet/hour journal.
Against this purchase agreement, I will issue monthly PO based on the actual time spent. I will use the monthly bill received from the vendor.
My challenges are the following:
1. In my purchase agreement, I can only have a project category of Type "Item". Hence, the budget is type Hour category and actual I cannot use the same category. How this can be managed using Purchase Agreement. I can only do this directly in PO (Without using PA). Then my rate contract with the supplier will have an impact
2. When I am renting 10 Forklift operators @ $20 per hour, how will I define this in my line item. I should have a quantity as 10? I can't put $20 in Unit price. Then, I will have only $200 as Amount. Whereas the total amount should also multiply with the actual hours in the month. Let us say 100 hours spent by all 10 workers. Hence, when I release the PO from PA, it should be 10 (Qty) * 20 (Unit Rate * 100 (Hours) = $20,000. Where can I define the hours and quantity in the same line?
For No 1:
Do you know beforehand how many resources will be used internally (own) and how many will be purchased (rented) externally? If you want to have an actual - budget comparison you would need to have an idea about that because, as you said, PO's only work with the item category type and you would have to establish a plan/budget for internal and purchased resources.
For No 2:
When you post the PO invoice then you should get the quantity of hours worked by the rented workers and can adjust the quantity. As an example, you can for example enter 10 operators * 8 hrs/day = 80 hours at a price of $20 when you create the PO. Those hours are based on your budget/plan. Once the invoice arrives you might get charged 85 hours and can adjust those hours when posting the invoice to get the correct costs on the project.
Dear Dr. Ludwig,
Thanks for your quick reply...
During budget, customer may have a ballpark estimate of 80:20 ratio (80 being own resources and 20 being rented). However, the way, customer has structured the budget codes (Project categories) as follows:
Ready Mix Concrete
Road & Pavement
Fire Fighting Network
They might use own workers or rented workers based on my situation. Even if they know, it is not possible to create two budget codes for each of the above categories. I have only listed few there 50 codes for manpower. They will have to maintain 100 codes now. I don't think, customer will agree to it..
Thanks for your suggestion. Let the customer enter 80/85 hours (For all operators). I will go by that.. :-)
There is possibly another workaround that comes to my mind.
This goes as follows:
1. Create and post purchase orders for the external workers that you use. The important thing here is that you post this against a transfer account, something like:
DR: Transfer account
CR: Accounts Payable
2. Let the external workers post their time directly on the projects they work for.
This generates a posting like:
DR: Project costs
CR: Labor allocation account
3. Compare the transactions that are made on the Transfer account (step 1) and the labor allocation account (step 2) for your external workers. Any remaining balance needs to be clarified and posted manually on the project for example as an expense.
The advantage of doing that would be that you have an additional control of the hours the external people work on projects and how many hours you get actually charged ;-)
Maybe you want to test this workaround to see if this is feasible to implement in your environment.
Thank you Dr. Ludwig for the timely help..... Much appreciated....
Hello Dr. Ludwig,
I think, the best way would be create rented Purchase Agreement and Purchase Orders without giving a project number and categories. As you rightly pointed out, this should be Debiting a clearing account while the Credit is to the vendor. Before that, I will create the rented employees as Contractor in worker master so that, I can post the timesheets. I will use the same clearing account for Credit such that, this will get reversed when the Vendor PO invoice is posted. If at all there is a difference, can be adjusted (+/-) using an expense journal.
Business Applications communities