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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Project-related Invent...
Microsoft Dynamics AX (Archived)

Project-related Inventory Management

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Posted on by Community Member

I would like to inquire regarding an integration on Project-related inventory management.

Let's say, we are purchasing inventories for Project A.  These items are stock items and will be stored in warehouse. In addition, these items are issued as needed in project/s.  My concern is that whenever we do product receipt for these Project-Purchase Orders, these items are fully consumed and warehouse location is emptied of the qty ordered.  What we wanted is to completely monitor the inventory being maintained in the warehouse as well as those that are issued on projects. (e.g. We have made a purchase order for Project A of 5,000 bags of cement to be stocked and monitored.  These will be stored in Warehouse 1 and will only be decreased once Project A requested that an item (let's say 1,000 bags of cement) be issued (deducted) from it's stored location.

Hope you can help me out.

Best regards,

Edmond

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Edmond

    You need to develop a new report -possibly a power bi one- to get a good overview and control of your items especially if they're not directly consumed or shipped but still remain in your company

    Best regards

    Ludwig

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

    Hi Edmond,

    Have you looked at the project parameter 'Item consumption'? Have you tried to disable this?

    In the past there was a mandatory item consumption when creating purchase orders related to projects. As of a certain update (AX2012R3) this parameter was added.

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    You mean, there is no way, using the standard AX2012R2 functionality, that a purchased (stocked) item be stored in inventory warehouse location if it is project-related (since it will be fully consumed after purchase receipt)? Also, as Andre mentioned, will disabling Item Consumption parameter solve this issue?  Please tell me more about Item Consumption parameter (if activated and inactivated).


    Best regards,
    Edmond

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Edmond,

    What you want is to ... completely monitor the inventory being maintained in the warehouse as well as those that are issued on projects.

    If you want to have this monitoring then you cannot 'consume' the items on the project. Consuming on the project means that you post for example an project item journal or that you post the project related PO invoice.

    That is becasue at the time you post the invoice, your items enter and immediately leave your stock.

    In your example you write...

    We have made a purchase order for Project A of 5,000 bags of cement to be stocked and monitored.  These will be stored in Warehouse 1 and will only be decreased once Project A requested that an item (let's say 1,000 bags of cement) be issued (deducted) from it's stored location.

    Now, if you have linked this purchase order to a project, you won't be able to track the items in the inventory any longer because the cement literally 'disappears' from inventory with the posting of the Project PO invoice.

    Workaround:

    A possible workaround is purchasing the cement without having a linkage to your project. That is, you purchase it and put the cement in your warehouse first. Even though you don't have a direct linkage to a project you can still have a kind of project tracking if you make use of financial dimensions e.g. a 'Project finance dimension'. At the time you post the PO invoice then you can see that on your project finance dimension inventory increases. When the cement is needed you can then post a project item journal and consume the cement; that is remove it from your warehouse.

    The problem with this workaround is that you can't directly identify the cements in the project module until it is taken out and consumed for your Project. This control can only be made at the financial dimension Level.

    Hope this helps.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    You have made a good point here.  Another point to consider is the budget linked to the project related purchases.  If we do the workaround you have suggested, then how will it update the budget (specific for the project)?  All of our Project-related purchases is linked to a budget.

    Best regards,

    Edmond

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Edmond,

    The project budget will be reduced at the time the consumption occurs, i.e. when the project item journal is posted and not at the time the PO invoice is created or the PO is created. That is because I mentioned that no linkage to the project is established when creating the PO in order to track the items in inventory until required/consumed for the project.

    A second alternative that comes to my mind are item requirements.

    Are you familiar with this project functionality and do you use it?

    Best regards,

    Ludwig

  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,888 on at

    So you have an installed quantity which is not yet actually consumed e.g a pallet of cement bags from which one bag has been issued.

    You may also issue the same item to different wbs lines or sub projects, or even buy in bulk across several projects.

    So why not create a project warehouse  and buy to inventory and issue from there as needed to the appropriate project /activity..

    You can run mrp to include, or not include that warehouse

    You can also easily value the stock in that warehouse i.e. bought for the project but not yet consumed.

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    Well that makes a good sense.  It might be a good option to really consider. Now, regarding the Item Requirements, I have discussed it with my client but they did not want to create a customer and additional processes that it requires so I guess I will stick with the first option.

    Blessings to you!  You really did help us a lot.


    Best regards,

    Edmond

  • Community Member Profile Picture
    Community Member on at

    Hi Magic1949,

    Can you please tell me more about Project Warehouse?  Haven't heard that before.  Is it compatible with our AX 2012 R2?

    Best regards,

    Edmond

  • Community Member Profile Picture
    Community Member on at

    Hi,

    Can you please tell me more about Project Warehouse?  Haven't heard that before.  Is it compatible with our AX 2012 R2?

    Best regards,

    Edmond

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