Purchase agreement and the project module

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Posted on by imran ul haq

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Hi All

i have one scenario, say like, i have one purchase agreement with the vendor and against this purchase agreement i want to create the PO's which are pertaining to different projects, say for transportation service item i have agreement with vendor based on the trip. And based on the number of trip vendor submitting the invoice monthly basis and cost controller is assigning the trips to the project. in this way we have to create the multiple PO's in multiple project and the number will increase if we have the other agreement with another vendor for the same item.

What i was thinking, i will create the PO project wise with the number of trips that were defined in the project budget and monthly whatsoever the invoices received cost controller segregate them based on the project and we will receive and invoice them.

Please suggest, thanks in advance.

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran,

What is it that you want to know exactly? Whether you can apply what you described or something else \ in addition?

Best regards,

Ludwig

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imran ul haq 4,017 on at

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Hi Ludwig,

Can i apply what i described above or is there other way by which i can solve or achieve my scenario.

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran,

I believe that what you describe will work out. Probably discuss it with your cost controller that he/she is also happy :-)

...What i was thinking, i will create the PO project wise with the number of trips that were defined in the project budget and monthly whatsoever the invoices received cost controller segregate them based on the project and we will receive and invoice them.

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imran ul haq 4,017 on at

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Hi Ludwig,

i discuss the scenario with the cost controller it looks good but the problem is that we have purchase agreement of the same service with four vendors, so how can we divide the budgeted quantity based on the vendor.

I also tried one more thing, i create the generic PO, mean not from the project module from accounts payable, while creating the PO i select the random project number at the header and create the lines of the same item and in the lines details i select the different projects. So i believe in this way we can create the PO as per the invoice submitted by the vendors and in just one PO we can distribute the amount of the invoice to all the projects.

Can you please suggest me on the scenarios.

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran Ul Haq,

What you describe is correct that you can use a single PO to distribute costs to multiple projects as long as you specify the project number in the PO lines.

Regarding the division of the budget quantity based on the vendor:

In the project budget form, you do not have the chance to setup vendor specific budgets. What you can do though in the standard application is making use of the budget module functionalities. That is, rather than executing the budget control from the project module, you transfer the budget to your ledger (Budget module) where you can setup the budget control configuration based on financial dimensions. This requires that you make use of a project, vendor and item financial dimension and that you are able to split up your budget funds correspondingly.

Other than that, you probably have to implement a system modification if you want to track budgets at the project & vendor level.

Best regards,

Ludwig

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imran ul haq 4,017 on at

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Hi Ludwig,

Thanks for your reply, i believe currently i can use the option of creating single PO with multiple line and specify the project number in POP lines.

thank you once again for your usual help and support.

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran Ul Haq,

Yeah, I think that's a good option to go forward.

If there is nothing else open it would be great if you could verify and close this thread.

Many thanks and best regards,

Ludwig

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zubairalam 151 on at

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Hi Ludwiq,

I have the same scanrio, where multiple projects have same/one purchase order.

All the things are working fine, except the prepayment funcationality on purcahse order.

When I am trying to attache prepayment to this purchase order systme is saying;

"All purchase order lines must belong to project XXXX"

Can you please help me in this regard.

Thanks,

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Ludwig Reinhard Microsoft Employee on at

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Hi Zubair Alam,

What AX2012 version do you operate?

If I remember it correctly then a new functionality that became available with the lasted updates should solve this issue.

Best regards,

Ludwig

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zubairalam 151 on at

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I am using D365F&O.

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