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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Inventory(Onhand) for ...
Microsoft Dynamics AX (Archived)

Inventory(Onhand) for Items procured using Project Purchase Order

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Posted on by Community Member

I want to know the detailed reasoning of why I can't get the items procured through project purchased orders onhand. Why it is always consumed immediately. Lets assume I am managing a large project and there are several thousand items which needs to be procured but assigned to different teams during the lifecycle of the project. How can I get the items issued to teams and manage the inventory counts and issue statuses?

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  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi,

    Have you tried using item requirements?

    They allow you consuming the items at the time you want and nicely work together with purchase orders.

    That is, you can process your POs and determine when you want to have the consumption posted.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Ludwig, 

    I have explored the item consumption and project PO, they can do the consumption and book cost as per my requirement, but how can I track the inventory of the items procured through Item requirement. I want these items to be brought to Inventory so that I can issue and re-issue them to Project team

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Mudassar Hassan,

    The project module allows you only two settings in regards to production orders;

    The first one consumes the finished product, which means that the item produced it put on stock for a 'Logical second' and at the same time taken out of the stock and consumed for your project. This whole transaction is recorded in a single voucher and you will not easily notice this two step production posting principle.

    The other option would be to have the individual production postings recorded at the project level but this does not work in any case and I am not sure whether this fits your requirement.

    I have another question:

    Do you actually need to have production orders linked to a project? Can't you produce 'on stock' and then consume the item in a separate second step?

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Ludwig,

    In-fact I don't need production module. The main purpose of the inventory is only the tracking/management point of view. Cost booking/financial is not of any concern.

    Here is the detailed requirement and I am open to all options and looking for best solution

    1. We are an engineering company who provides automation services to our clients. The projects contains both the man-hours and the items to be procured and commissioned on the customer site. Mostly projects will be fixed price and there will be a complete schedule for invoicing. The core elements of our project are:
      1. Items ( the proposed list of items to be procured for the project with Cost and sell price of each item)
      2. Man hours - The engineering Man-hours consumed in the project to assemble and engineer the product required in the project
      3. Expenses - Travel, Lodging etc to be booked in the project
    2. We don't have any separate store/inventory department
    3. We will run the procurement process for the items required in the project
    4. The budget control is the requirement, i.e the PO shall be controlled by the cost budget of each line item
    5. Once the invoice is posted, financially all the cost will be immediately booked in the project.
    6. Once the material is received, there should be no financial event/entry.
    7. Since we used to temporarily issue the items procured to various vendors / employees / project team so we need inventory management of all items. We can issue these items and can see the reports. The item can be returned and can be reissued again and again to project team/employees.
    8. Similarly we can have some leftover material, which was procured but was never issued to anyone and want it to be available (at zero cost) to be reused in some other project.
    9. The above points i.e. 6,7,8 shall have no financial transactions.

    Please review the above and suggest some combinations of solutions possible in Project Module in AX

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi,

    What you write under no. 7 sounds like a kind of rental business to internal and external parties (employees/teams, customers, vendors, ...). If I understand you correctly, then you need that equipment for executing the work at the customer site and then return it once, the job is finished, is that right? Will the customer be charged a fee for this 'rent' that is included in your fixed price?

    In addition to what I call 'equipment' that might be used for several projects you need some consumable items that will be used when doing the service at the customer site, is that right? As you wrote above, you have fixed price projects, so, they customer won't be charged for the consumable items used during the service. Is that right?

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Ludwig,

    • We don't have any rental business model applicable here, infact the material issue is just a process to know the whereabouts of any hardware, there is nothing to do with financial aspects or any charge to the customer.
    • There will be no such equipment which will be charged to multiple projects. Consider that I purchase 5 notebooks for a Project A but unfortunately I only consumed 3 notebooks in Project A. Now the remaining 2 notebooks are free to use. So I can issue the remaining 2 to the Project B at 0 cost( mean it will be available free of cost for Project B)
  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Mudassar Hassan,

    If you are just interested in tracking your notebooks - as an example - can't you create project specific inventory dimensions such as a warehouse and transfer the notebook to that warehouse. Once the project is finished it can be returned to your ordinary warehouse and be used by other people for other projects.

    Doing that allows you - from a warehouse perspective - to track your notebooks and other items.

    They will, however, never be consumed to a project.

    I am not sure if I understood that process correctly and whether this process might fit.

    What do you think?

    Best regards,

    Ludwig

  • Verified answer
    Community Member Profile Picture
    Community Member on at

    Dear Mudassar,

    greeting ...

    I believe AX is behaving as per Project Accounting Standard, that whenever Items are received into a projects via project purchase order, they will directly be debited into WIP as lump sum of total item value.

    We have the same issue with our clients, that we need to track Project On-hand Items but unfortunately there is no option and AX dose not allow.

    However, from finance  point of view, that would be fine and accepted by the finance team. but unfortunately this wont satisfy the operation & project team !!

    Regards

    Yasser,

  • Community Member Profile Picture
    Community Member on at

    Issuing the item to the project warehouse is a good solution, but then consumption will not be as per requirement. It should be immediately consumed(booked) in project once the invoice is posted

  • Community Member Profile Picture
    Community Member on at

    Exactly Yasser, we are lacking Project on-hand functionality in AX. Financially there is no issue

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