Project Item Consumption via Sales Shipment#

In Microsoft Dynamics 365 Business Central¹ Standard, the sales document with project referencing is used to post revenue, but not to post consumption. It is not intended that items are posted from the warehouse, nor that a project is debited with resource expenditure. Project consumption is generated from project entries (worksheets), project delivery bills, purchasing documents and time entries. Further information see Project expenditure

Items are planned in budget lines and posted from the warehouse to the project via a project delivery bill. This creates an item entry of the entry type "WITHDRAWAL" (consumption of the item from the warehouse stock) and a project entry of the entry type "CONSUMPTION" (debit of the project with the corresponding costs). Neither item entries nor project entries are created when the sales delivery is posted. Only when the invoice is posted is a project entry of the entry type "SALE" created in order to allocate the revenue to the project.

Entries when using the project delivery bill:

There are also other entries, such as value entries or debtor entries. However, these are not relevant for the current process.

This can be changed via the Project Item Consumption via Sales Shipment process. In this case, no project delivery bill is required, the item consumption and the project debit are carried out via the sales delivery bill. The project delivery bill is therefore replaced by the sales delivery bill:

There are also other entries, such as value entries or debtor entries. However, these are not relevant for the current process.

Setup#

Projects Setup#

Activate Project Item Consumption via Sales Shipment#

In order to be able to use the function extension, it must first be activated globally in the Projects Setup on the Manufacturing and Warehouse Setup Fasttab by activating the Project Item Consumption via Sales Shipment toggle.

The toggle can only be activated if the Project Purchase Incl. Inventory activated, it would not be appropriate to post items via a sales document if they have already been assigned to the project by the purchasing department and are therefore not available in the warehouse.

Item Posting Type#

In the Project Setup, not only is the process activated, but the Item Posting Type for the item entry is also defined via the Item Posting Type. Proj. Cons. by Sales Doc. field.

The item consumption entry usually has the type SALE, similar to commercial deliveries. In the process with project delivery bill, an item entry of type OUTGOING is posted.

Sales & Receivables Setup#

To ensure that the processes are posted correctly, especially in the case of cancellations, the following toggle must be activated in the Sales & Receivables Setup: Shipment on Invoice, Return Receipt on Credit Memo and Exact Cost Reversing Mandatory must be activated.

Inventory Setup#

If the Item Posting Type "SALE" is selected (see Item Posting Type), Expected Cost Posting to G/L must be activated in the Inventory Setup.

The background to this is that if a sales delivery has been posted but not yet invoiced, the item is still included in the stock value. At the same time, a project consumption item is posted, which increases the WIP. As a result, the item is recorded both in the warehouse stock and in the project value. Debit costs must therefore be posted. It is not possible to restrict this posting to certain cases. As soon as debit costs are active, they are always posted.

Master Data Setup#

Whether an item is debited from the warehouse when a sales posting is made depends on the item itself or the respective location. There is a Project Item Consumption via Sales Shipment toggle on the item and location card. The warehouse process is only carried out independently of the item or warehouse if this is activated.

Please note that only items with the type "Stock" can be used for this process.

Use in Workflow#

All sales documents are supported with posting of deliveries and return deliveries as well as cancelation functions.

This includes, for example:

• Posting a sales delivery from an order
• Cancel goods issue on a posted sales delivery
• Create correction credit memo from a posted sales invoice
• Cancel from a posted sales invoice
• Correcting from a posted sales invoice
• Create a credit memo via "Copy document"

Budget Line Reference#

The Project Item Consumption via Sales Shipment process is only activated for sales lines that contain an item or storage location that has the corresponding setup. The sales line must also be linked to a project budget line.

It is assumed that items that are consumed via a sales line are also planned in the project. The security check in the project delivery bill, which is intended to avoid double consumption, is based on the use of project budget line references.

Sales Line#

There are two fields in the sales line that indicate whether and how this process is carried out. The field Project Item Consumption via Sales Shipment shows the posting process in general, while the field "Item posting type project sales" indicates whether the item will have the item type "SALE" or "WITHDRAWAL".

These two fields are required to start the process during operation or to change the Item Posting Type. The posted sales lines must continue to be posted according to the previous procedure. Neither field can be changed manually; they are set automatically for new sales lines in accordance with the above settings.

Item "Time & Material"#

After posting a sales delivery for an item that is billed Time & Material, there is the following special feature:

So that an invoice can be posted directly from the sales order without a billing proposal, automatic billing entries are created for the order line when the delivery is posted. These entries close the associated project entries.

If the billing is to be controlled via the billing proposal, it is necessary to use the option "Delete billing items in orders". This removes them from the order and proposes the project items for the billing document (with reference to the sales order).

Project Shipment#

To avoid double consumption postings, no project delivery note line can be created for a project budget line if it is already contained in a sales order or invoice line that is intended for posting the consumption from this sales document.