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Finance | Project Operations, Human Resources, ...
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System allows for tracking direct costs and indirect costs (encumbrance and expense) to project through journal entries

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In PMA(project management and accounting) How to track direct costs and indirect cost in the project through journal entries?

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  • André Arnaud de Calavon Profile Picture
    301,231 Super User 2025 Season 2 on at

    Hi Neha,

    Can you elaborate? What is the required process and how do you want to calculate the indirect costs? The indirect costs is a while ago for me. You can read more here: docs.microsoft.com/.../about-indirect-costs-for-projects

    The documentation is based on AX2012, but also valid for Dynamics 365. As far as I can remember, the indirect cost is only applied to hour transactions, but you can verify that.

  • AlinaC Profile Picture
    on at

    Hi NehaGupta,

    Please provide more details on what you are trying to achieve. The link that Andre provided for AX2012 will indeed apply to D365 as well. If this information is not sufficient please let us know.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Good Morning NehaGupta,

    Do you need those indirect costs at the project level or would it be sufficient to post them on project-findims?

    If you need them on findims only then you can make use of the standard GL ledger allocation functionalities.

    That's by far the easiest way.

    Best regards,

    Ludwig

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