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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Entries at the time of...
Microsoft Dynamics AX (Archived)

Entries at the time of product receipt

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Posted on by ankag 75

Hi,

I am using project management and accounting module with the projects as internal project type.

My business requirement is that when I would receive services then the cost should charge to the account code as per the project module.

Example - Project id is PRO1 and category is Audit fees. Posting profile for the same is 57001.

I have created service1 as the non stocked item in catalogue.

Now, the PO is created for the service1 with the above mentioned project id and category.

On product receipt the system is passing the below mentioned entry :- Purchase expenditure, uninvoiced A/c ....Dr

To Accrual A/c

On invoicing the following entries are passed :-

Accrual A/c ....Dr

        To Purchase expenditure, uninvoiced A./c

Project cost A/c (57001)....Dr

      To Vendor A/c

But the requirement is that system should post the mentioned entry at the time of product receipt - Project cost A/c ....Dr 

                                                                                                                                                                            To Accrual A/c

The objective is to record the cost in the expense account at the time of product receipt instead of invoicing. We are following monthly closing and are required to report monthly data to regulatory authorities.

      

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Entries at the time of product receipt

    Hello ankag,

    This is something where I cannot help you; that is, whether or not you need to use the project module depends on a number of factors that you and your colleagues have to decide.

    If you come to the decision that you are not using the project module you can alternatively make use of procurement categories for which you can also create postings at the time the product receipt is posted.

    This seems to offer a bit more flexibility.

    Yet, the main question that you have to answer is whether or not to go along with the project module.

    Best regards,

    Ludwig

  • ankag Profile Picture
    ankag 75 on at
    RE: Entries at the time of product receipt

    Hi Ludwig,

    Thank you for your suggestions.

    We are already using the approach of setting up services as stocked but this is causing a lot of issues. This is the reason we are looking for some alternative solution to eliminate use of project module.

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Entries at the time of product receipt

    Good Morning ankag,

    Have you been able to review the answers and been able to test it?

    Please let us know whether your questions got answered or some additional help is needed here.

    Many thanks and best regards,

    Ludwig

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Entries at the time of product receipt

    Hello ankag, 

    The only possbility to post project costs at the time when the PO packing slip is posted is by enabling the 'create item requirement' and 'item consumption' parameters that are available in the general tab of the project parameters form. 

    Enabling those parameters will post the costs with the PO packing slip posting. 

    This does, however, work only for stocked items not service items. 

    If you want to see the costs earlier and do not or cannot use the committed cost functionality then you would have to change your item setup and make them 'dummy' stocked products. 

    Otherwise, costs would be posted only at the time the invoice is posted. 

    Best regards, 

    Ludwig

  • ankag Profile Picture
    ankag 75 on at
    RE: Entries at the time of product receipt

    Good morning Ludwig,

    Hope you are doing well !

    I understand that since these are non-stocked items there is no need to post product receipt. But in our scenario 80% of our cost is services and there is delay of 3/4 months in invoices being received from the supplier. So it becomes necessary to capture the cost at the correct time to prepare monthly reports as a result of which we had to go for posting product receipt to capture cost as well as accruals.

    Note: 

    Assuming that no change is made, you do not necessarily need the project cost posting at the time the product receipt is posted in order to analyze the costs at the project level. That is because in the project module you can preview pending costs, such as costs from created purchase orders, by making use of the committed cost functionality that can be enabled in the project module parameters. 

    Thanks for sharing this approach as well but apart from tracking the project cost we also need the cost posting in the main accounts as soon as the services are performed by the supplier i.e. without waiting for invoices. 

     

    The item model group for non-stocked items is as under:-

    6320.item-model-group.png

     Is there any other workaround which can be used. Since many of our departments use the same services but the cost of which will be charged to different main account, we have used project module to control those posting. So there is possibility of removing project module if the same result can be achieved in a more efficient manner. Now, different items for different department will increase the catalogue 7 times, as there are 7/8 departments and each department have separate account code based on the activity they are performing.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Entries at the time of product receipt

    Good Morning ankag,

    With non-stocked service items you won't get the costs posted at the time the product receipt is posted.

    An important question is why you post the product receipt?

    Isn't this a non-stocked product? 

    Can you share the setup of the item especially your configuration in the item model group?

    Note: 

    Assuming that no change is made, you do not necessarily need the project cost posting at the time the product receipt is posted in order to analyze the costs at the project level. That is because in the project module you can preview pending costs, such as costs from created purchase orders, by making use of the committed cost functionality that can be enabled in the project module parameters. 

    Best regards, 

    Ludwig

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