Project Material Management: Accounting for Project Stock

This topic explains how you can use projects and project tasks as a source of accounts and subaccounts in sales documents, purchase document, and inventory transactions.

Default Accounts in Projects and Project Tasks

On the Defaults tab of the Projects (PM301000) form and the Summary tab of the Project Tasks (PM302000) form, you can specify the following accounting settings:

  • The Default Sales Account and Default Sales Subaccount to be used in billing documents and allocations for the project.

    If the Subaccounts feature is enabled on the Enable/Disable Features (CS100000) form, you must specify the default sales subaccount for a project and each project task if the default sales account is specified.

  • The Default Cost Account and Default Cost Subaccount to be used in purchase documents and allocations for the project.

    If the Subaccounts feature is enabled on the Enable/Disable Features form, you must specify the default cost subaccount for a project and each project task if the default cost account is specified.

Posting Classes for Stock Items

If you want to post GL transactions related to stock items being purchased or sold for projects to separate accounts and subaccounts, you need to configure a separate posting class for these items. You create posting classes on the Posting Classes (IN206000) form and specify the following settings:

  • Class ID: You type the unique identifier of the posting class, which is an alphanumeric string of up to 10 characters.
  • GL accounts: You specify the general ledger accounts and subaccounts assigned to the posting class. The exact set of accounts and subaccounts you need to select depends on the items for which you are creating a posting class.
  • Posting settings for transactions: You specify which GL account the system must use for which type of transaction.

When you create posting classes, you can configure the following project-related scenarios to post transactions to expense and revenue accounts according to the business processes of your organization:

  • Posting transactions to GL accounts specific for a particular project: Suppose that you want to use a separate account and subaccount for each project task. You do the following:
    • Assign a specific account and subaccount to each project task.
    • Create a posting class. In the class, select Project as the account source and specify the subaccount mask that corresponds to the project (J).
    • Optional: Assign item classes to the created posting class.
    • Assign particular items to the created posting class.
  • Posting transactions to GL accounts specific for a particular project task: Suppose that you want to use a separate account and subaccount for each project task. You do the following:
    • Assign a specific account and subaccount to each project task.
    • Create a posting class. In the class, you select Project Task as the account source and specify the subaccount mask that corresponds to the project task (T).
    • Optional: Assign item classes to the created posting class.
    • Assign particular items to the created posting class.

For more information about the uses of posting classes, see Posting Classes: General Information.

Posting Settings for Purchase Documents

In the Use COGS/Expense Account From box on the Posting Classes (IN206000) form, you can select Project or Project Task. The system will use the project or project task, respectively, as the source of the cost of goods sold (COGS) or expense account in the purchase documents that include lines with items of this posting class.

If a non-project code is specified in a line of one of these documents, or if no default cost account has been specified in the project or project task, the system will instead use the account associated with the posting class. This account is specified in the COGS/Expense Account box on the GL Accounts tab of the Posting Classes form.

In the Combine COGS/Expense Sub. From box on the General tab of the Posting Classes form, you specify the following sources of subaccount segments:

  • J: The system copies the subaccount segment from the project—that is, from the Default Cost Subaccount box on the Defaults tab of the Projects (PM301000) form.
  • T: The system copies the subaccount segment from the project task—that is, from the Default Cost Subaccount box on the Summary tab of the Project Tasks (PM302000) form.

If a non-project code is specified in a line of a document, or if no default cost subaccount has been specified in the project task or project, the system will instead use the subaccount associated with the posting class. This subaccount is specified in the COGS/Expense Sub. box on the GL Accounts tab of the Posting Classes form.

Posting Settings for Sales Documents

In the Use Sales Account From box on the Posting Classes (IN206000) form, you can select Project or Project Task. The system will use the project or project task, respectively, as the source of the sales account in the sales documents that include lines with items of this posting class.

If a non-project code is specified in a line of a document, or if no default sales subaccount has been specified in the project task or project, the system will instead use the subaccount associated with the posting class and specified in the Sales Account box on the GL Accounts tab of the Posting Classes form.

In the Combine Sales Sub. From box on the General tab of the Posting Classes form, you specify the following sources of subaccount segments:

  • J: The system copies the subaccount segment from the project—that is, from the Default Sales Subaccount box on the Defaults tab of the Projectsform.
  • T: The system copies the subaccount segment from the project task—that is, from theDefault Sales Subaccount box on the Summary tab of the Project Tasks form.

If a non-project code is specified in a line of a document, or if no default sales subaccount has been specified in the project task or project, the system will instead use the subaccount associated with the posting class and specified in the Sales Sub. box on the GL Accounts tab of the Posting Classes form.

Reason Codes for Issue of Stock for Projects

You may need to directly issue items stored in a company warehouse for a project. You do this by creating and releasing an inventory issue transaction on the Issues (IN302000) form or an inventory adjustment transaction on the Adjustments (IN303000) form. In inventory transaction lines on these forms, you specify the following:

  • The inventory item
  • The project and project task for which the item is being used
  • A reason code, which serves as a source of the offset accounts and subaccounts (if subaccounts are in use in the system).

To make the system use the subaccount from the project or project task, you define a reason code with the Issue or Adjustment type on the Reason Codes (CS211000) form. In the Combine Sub. From box, you specify the following sources of subaccount segments:

  • J: The system copies the subaccount segment from the project—that is, from the Default Cost Subaccount box on the Defaults tab of the Projects (PM301000) form.
  • T: The system copies the subaccount segment from the project task—that is, from the Default Cost Subaccount box on the Summary tab of the Project Tasks (PM302000) form.

If a non-project code is specified in a line of an inventory issue or inventory adjustment, or if no default cost subaccount has been specified in the project task or project, the system will instead use the subaccount associated with the reason code (that is, specified in the Subaccount box on the Reason Codes form).

For more information about automatically combined subaccounts, see Combined Subaccounts: General Information.