AX2012. Project procurement. Item consumption depending on Project management and accounting settings.

In this post I would like to point out some differences upon consumption of items in Project management and accounting module. Especially when company purchases them from an external vendor.

The main difference between using project purchase order and normal purchase order is that item is not on stock at the end, because it’s consumed by project regardless 2 flags in the Project management and accounting parameters. Moreover, with these flags you are controlling when the costs and revenue associated with products and services that are required for execution of a project will hit the project.

I would like to show you the summary of the buying products required to execute the project depending on those flags.

Pre-requisites:

Project type: Time and material

Inventory model:

Stocked items = yes

In order to calculate cost amount at the time of product receipt posting and use calculated cost upon sales order packing slip posting:

Include physical value = yes

In this case we will initiate the purchasing process through creating purchase orders directly from the project.