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Dynamics 365 Community / Forums / Finance forum / Sales orders in Projec...
Finance forum

Sales orders in Project management and Accounting vs. Item requirements

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Posted on by 5

Hello Community, 

It is my understanding that Item requirements will be used in PM&A to track any item consumption for a customer facing Time and Material project and process the Picking, Pack slip update and Invoicing. I also see the ability to create multiple 'Sales orders' from the Item task on a Project form in D365.  The only difference I have noted so far is even though I can create multiple Sales orders for a Project and process the picking, packing it does not allow me to invoice from the SO which is understandable considering that we have to run an invoice proposal from PM&A. On the other end, I know there will be one item requirement for the duration of a project that will be opened and closed as we take the items associated through the Picking, Packing, and Invoicing process. 

My questions are as follows:

1. What are the disadvantages of using SOs created from the Project Item task instead of the Item requirement, because the customer is looking to have multiple SOs anyway for a project

2. What are the disadvantages of using Item requirements instead of SOs for a project other than having one item requirement for the duration of the project.

3. Is there a documentation where Microsoft suggests to use Sales orders vs. Item requirements and in which scenario will each one best lend itself? I searched and have not been able to find anything. 

I have the same question (0)
  • Verified answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi,

    Here some comments for your points raised.

    For 1: I don't see any major disadvantage or advantage except that you have to do more clicks when working with sales orders. The inventory transactions will be the same and also the accounting entries created.

    For 2: Similar to 1. I cannot see major disadvantages of using the one or the other for consuming items.

    For 3: There is nothing that I am aware of. If you find one, please share.  

    In general, I would suggest that you do some testing with your users to see what they like more - item requirements or sales orders - in your case.

    Best regards,

    Ludwig

  • VMVM Profile Picture
    5 on at

    Thanks Ludwig for the quick turnaround. Will have to go through with them. Will also share if I come across some documentation.

  • Verified answer
    Eugen Glasow Profile Picture
    6,361 on at

    1. Normal SOs do not produce project transactions upon delivery, and the events of the cost recording, revenue recognition and billing cannot be separated. On the other hand, an Item requirements SO cannot be confirmed, and this is the major disadvantage.

    2. None. The standard view over the Item requirements is by line anyway.

    3. I am not aware of any conceptual documentation. The standard SOs are encaged anyway; for example, they are prohibited for Fixed price projects.

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