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Finance | Project Operations, Human Resources, ...
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Creating an Inventory Item from the Projects Module

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Posted on by

Hello there and I hope everyone is well and healthy,

I'd like to use the Projects module in D365 for item-specific projects.  By this, I mean that the company is creating an item that will be placed into inventory and eventually sold to its Customers.  They utilize freelancers who submit vendor invoices for their services.  Once all of the freelancers have submitted their invoices, a po is issued to 'package' the final product (they are creating a good that is eventually sold in a retailer - the 'package' PO would account for the total number of goods needed).  For example:

the Company wants to create an item that will be sold at Retailer A - this is Item A.

The Company receives Vendor Invoices from 3 different Freelancers for things such as creative, copyrighting, etc - these Vendor Invoices total $1,800 USD,

The item is ready for packaging - the company issues a PO to a packager to create 10,000 items at a cost of $1/item, totaling $10,000 USD.

The system will see the cost of this item as $1/unit as the item receipt reflects that per unit cost, but they need to include the $1,800 incurred from the freelancers in the item cost.

I've issued Vendor Invoices and associated them with the Project and I've also issued PO's from the project.  Is it possible to create a piece of inventory from within a project?  The only way I've succeeded thus far is issuing a negative item journal from within the project, where I'm manually entering the item cost by examining the Project's Cost Control.  I'd ideally like to see the Item's Cost reflecting any additional PO's issued or freelance invoices issued in the future as well.

Thanks you,

Dan

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  • André Arnaud de Calavon Profile Picture
    301,075 Super User 2025 Season 2 on at

    Hi Dan,

    I have moved your question to the Dynamics 365 Finance forum.

    You can use miscellaneous charges at the order, but also after receiving the invoice for the 10,000 items to raise the cost price of the items. You can read a bit more about "landed costs" here: organicax.com/.../

  • Satya Teki Profile Picture
    on at

    Hi Dan,

    Thanks for reaching out.

    For this scenario you can create a Project production order and associate a service item as part of the BOM product. The service item in your example can be a sub-contract purchase order which will add to the Project production cost.  Please note that once the production order is completed the items are marked (registered) to the Project. You can then create a negative Item requirement to move the products back to the Inventory and sell this to the end customer from the inventory. As this is a workaround and currently not supported , you can log this as an idea on ideas portal (experience.dynamics.com/.../) for consideration in the future releases.

    Please let me know if you have any further questions.

    Thanks,

    Satya Teki

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