Special behavior of a Internal Projects and inventory management?

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Posted on by dig41

Hello,

We are using projects of type INTERNAL to handle stuff we buy for our offices. And we have noted a behavior that we didn't expected, so we want to know if is normal or is some kind of misconfiguration.

In project purchase orders of those internal projects, on every item recepit the item is immediately consumed and "Deducted" from the inventory.

This means that we can’t manage physical inventory in these internal Project, nor we can control when these items are consumed with item-journals like in time-and-material projects.

Why in an internal project we can’t manage physical inventory?

We have checked “Create item requirement” and unchecked “Item consumption” in the Project module configuration. But I've read that affects only for non-internal projects.

May we use other type of internal project to solve the issue (COST, for example?)

Thanks in advance.

Alfredo.

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Ludwig Reinhard Microsoft Employee on at

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Hi Alfredo,

It looks as this thread continues your earlier one. (community.dynamics.com/.../223769)

Here some additional remarks:

- for internal projects you could order the stuff that you need for your offices through an ordinary purchase order that is not linked to a project. At the time you want to consume the items you can post them through an item consumption journal provided that the items are stocked items. Applying this alternative allows you handling the physical inventory as usual

- Alternatively you can make use of time and material projects and specify an internal organizational unit as customer (funding source) for your project contract. This alternative basically allows you taking advantage of the additional features that become available with for time and material projects without running the risk that an invoice can be created.

Hope this helps.

Best regards,

Ludwig

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André Arnaud de Cal... 306,118 Super User 2026 Season 1 on at

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HI Alfredo,

Any purchase order that has a reference to a project (internal or not) has the default behavior that items are consumed directly. If you need to manage the inventory, follow the comments from Ludwig to have no project reference on the PO.

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dig41 on at

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Hi Ludwig...

Yes it continues that thread. I was trying to understand specifically this behavior.

We decided change Project type to time-and-material, like you said in your second remark. Our purchase orders are always specific to projects and we need that trace.

Thanks.

Alfredo.

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dig41 on at

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Hi André,

Thanks for your comment, and it raises a further question.

We have several time-and-material projects, and none of the items purchased from them are automatically consumed o ítem receipt. Rather a question raises on every receipt asking "Do youwant to consume...".

I've read that in AX 2012 there is a new parameter in Project setup "Create item requirement”.

From your commment, that the reason time-and-material Project items are not automatically consumed?

I really appreciate your comments and Ludwig's, because the relationship between Project, Procurement and Inventory modules is not simple.

Regards,

Alfredo.

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André Arnaud de Cal... 306,118 Super User 2026 Season 1 on at

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Hi Alfredo,

I'm not able to check your feedback where on product receipt the system is asking for consuming. Are you aware of a possible customization? Can you provide the literal error message in English? Then I can try to find some settings or other features in my environment. Which exact version of AX2012 are you using?

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