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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / T&M Project and Fi...
Finance | Project Operations, Human Resources, ...
Answered

T&M Project and Fixed Price Project - Hybrid approach possible?

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Posted on by b_radlyjames 3,061

We have a more common situation where we need to:

1. On the cost side, we still need the standard T&M style project where we pay our workers a Cost Price X Hours.

2. On the sales side, however, we are transitioning to a fixed price model.

Is this something that a 'Fixed Price' project could handle?

The exact details on the fixed price model are sketchy at the moment, but rather than being based on number hours it would be based, potentially, on other factors. (4,6,8 hours cost = 1 fixed price fee).

EDIT:

I found this post here:

https://community.dynamics.com/ax/f/microsoft-dynamics-ax-forum/136546/fixed-price-projects-but-no-charge-time?pifragment-96834=1

Which is something similar to what we are wanting to do...

We still want our workers to post their time against projects so we can get their hours and the cost (What we're going to pay them) of their hours.

We just want the sales side to be able to be configured for fixed price.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: T&M Project and Fixed Price Project - Hybrid approach possible?

    Hello Brad,

    Well, based on my example, posting a timesheet could trigger a flow that creates automatically an item journal that is posted.

    That requires a customization in AX2012 but in D365FO you can simply configure a Flow for that purpose.

    Best regards,

    Ludwig

  • b_radlyjames Profile Picture
    b_radlyjames 3,061 on at
    RE: T&M Project and Fixed Price Project - Hybrid approach possible?

    We do plan on upgrading to D365 F&O.  How would the Power Platform help?

    Brad

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: T&M Project and Fixed Price Project - Hybrid approach possible?

    Good Morning bRadlyJames,

    If an upgrade to D365FO is an option then you can leverage the PowerPlatform for that purpose.

    With AX2012 this is more difficult and might need a system adjustment.

    Best regards,

    Ludwig

  • b_radlyjames Profile Picture
    b_radlyjames 3,061 on at
    RE: T&M Project and Fixed Price Project - Hybrid approach possible?

    Ludwig,

    Thank you so much for your response.

    Your single project idea is actually how we are currently doing.

    People post their hours which come through as non-chargeable.

    We then create a 'Fee' journal to correctly pass the 'Fee' onto the customer.

    I think we may look at your idea of creating a customization to help us create the 'Fee' journal.

    Thank you!

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: T&M Project and Fixed Price Project - Hybrid approach possible?

    Good Morning bRadlyjames,

    Is it possible that you setup a main project that has 2 subprojects?

    The first subproject can be a T&M project where people can post their time (only).

    The second subproject is a FP project that you use for invoicing customers with fixed 'fees'?

    An alternative workaround with a single project is the following one:

    People post their hours as usual trough timesheets.

    Those hours are non-chargeable.

    As they debit and credit a P&L account, your profit is not affected.

    Based on the hours posted additional item journals are posted - either manually or through a customization.

    Those item journals and postings depend on the timesheet hours posted and are used for invoicing the customer.

    That is, you have e.g. 4 hours posted and want to charge the customer a fixed fee for those 4 hours.

    To invoice the customer you post an item journal with a 'dummy' item that is subsequently invoiced to the customer.  

    Hope that information helps.

    Best regards,

    Ludwig

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