Project Inventory Tracking by Warehouse Location: To Purchase Materials and Services for a Project

This activity will walk you through the process of purchasing materials and services for a project from a subcontractor with purchase orders.

Attention:
This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that the HM's Bakery and Cafe customer has ordered two juicers, along with four hours of the installation service from the SweetLife Fruits & Jams company. The SweetLife company contracted the Squeezo Inc. vendor to provide the juicers and perform the installation. SweetLife's project manager has created the project.

Acting as SweetLife's purchasing manager, you will process the purchase of materials and services for the project. When the vendor delivers the juicers to company's warehouse, you will process a purchase receipt for the juicers. When the vendor provides the installation service, you will process an accounts payable bill from the vendor for the delivered juicers and provided service.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the following features have been enabled:
    • Project Accounting, which provides support for the project accounting functionality
    • Inventory and Order Management, which provides the purchase order functionality
  • On the Projects (PM301000) form, the HMBAKERY2 project has been created and the INSTALL project task has been created for the project. This task is the default project task.
  • On the Warehouses (IN204000) form, the EQUIPHOUSE warehouse has been created, and the HMBAKERY2 location has been created for the INSTALL task of the HMBAKERY2 project.
  • On the Posting Classes (IN206000) form, the PMSTOCK posting class has been created. On the GL Accounts tab, 12110 (Project Inventory) has been selected in the Inventory/Accrual Account box.
  • On the Stock Items (IN202500) form, the JUICER10C stock item has been defined. On the General tab (Item Defaults section), the PMSTOCK posting class has been selected in the Posting Class box.
  • On the Non-Stock Items (IN202000) form, the INSTALL non-stock item of the Service type has been defined. On the General tab (Item Defaults section), the Require Receipt check box has been cleared. On the GL Accounts tab, 54200 (Project Subcontract Expense) has been selected in the Expense Account box.
  • On the Account Groups (PM201000) form, the SUBCON and MATERIAL account groups have been created. The 54200 (Project Subcontract Expense) account has been mapped to the SUBCON account group and the 12110 (Project Inventory) account has been mapped to the MATERIAL account group.
  • On the Vendors (AP303000) form, the SQUEEZO vendor has been created.

Process Overview

On the Purchase Orders (PO301000) form, you will create a purchase order for the project, specifying the project and project task. Then you will create a purchase receipt and release it on the Purchase Receipts (PO302000) form. You will bill the purchase order on the Purchase Orders form and then release the bill on the Bills and Adjustments (AP301000) form. Finally, you will review the project balances on the Projects (PM301000) form.

System Preparation

To sign in to the system and prepare to perform the instructions of the activity, do the following:

  1. Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded; you should sign in as a project accountant by using the brawner username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button, and select 1/30/2024 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Creating a Purchase Order for the Project

To create a purchase order for the project, do the following:

  1. On the Purchase Orders (PO301000) form, create a new record.
  2. In the Summary area, specify the following settings:
    • Vendor: SQUEEZO
    • Date: 1/30/2024
    • Description: Purchase for HM's Bakery & Cafe
  3. On the Details tab, add two purchase order lines that have the settings shown in the following table.
    Inventory ID Order Qty. Unit Cost Project Cost Code
    JUICER10C 2 1500 HMBAKERY2 00-000
    INSTALL 4 80 HMBAKERY2 00-000

    The system automatically inserts the INSTALL project task for each line when you select the HMBAKERY2 project because this task is the default project task of the project. Also, in the line with the JUICER10C stock item, the EQUIPHOUSE warehouse is inserted automatically.

  4. In the Summary area, make sure that the Order Total value, which is the sum of the Ext. Cost of two lines (3,000.00 and 320.00), is 3,320.00.
  5. Save the purchase order.
  6. On the form toolbar, click Remove Hold. The system assigns the purchase order the Open status.

Step 2: Receiving the Purchased Materials to a Warehouse

To create a purchase receipt for the purchased materials, do the following:

  1. While remaining on the Purchase Orders (PO301000) form with the purchase order selected, on the form toolbar, click Enter PO Receipt.

    The system creates a purchase receipt with the Balanced status for the JUICER10C item and opens it on the Purchase Receipts (PO302000) form. The service item (INSTALL) does not require a receipt and is not added to the created document.

  2. On the form toolbar, click Release to release the purchase receipt.

    The system creates and releases an inventory receipt transaction based on the purchase receipt. On release of this transaction, the items are received to inventory, and the actual values in the project budget are updated. The purchase receipt is assigned the Released status.

  3. On the Projects (PM301000) form, open the HMBAKERY2 project.

    On the Cost Budget tab, review the actual values of the cost budget. Notice that the Actual Quantity and Actual Amount of the line with the JUICER10C item are 2 and 3,000.00, respectively. Also notice that the actual values of the line with the INSTALL item are still zero.

  4. To review the project transaction and general ledger transaction that have been created on release of the inventory receipt, do the following:
    1. In the table, click the cost budget line with the JUICER10C item.
    2. On the table toolbar, click View Transactions.
    3. On the Project Transaction Details (PM401000) form, which the system opens in a pop-up window, review the project transaction that has updated the actual values in the budget line. The debit account group in the transaction (MATERIAL) is the group that is mapped to the 12110 inventory account of the JUICER10C stock item specified in the line.
    4. In the only line, click the link in the GL Batch Nbr. column, and on the Journal Transactions (GL301000) form, which opens in a pop-up window, review the created general ledger transactions. Notice that the system debited the 12110 (Project Inventory) account for 3,000.00. This GL transaction line has the project and project task specified and thus updates the actual amounts of the project in the corresponding cost budget line. The offset transaction line is posted with the non-project code (X) and does not affect the project budget.
    5. Close the pop-up windows.

Step 3: Creating a Bill for the Purchase Order

To bill the purchase order, do the following:

  1. On the Purchase Orders (PO301000) form, open the purchase order that you have created earlier in this activity.
  2. On the More menu (under Processing), click Enter AP Bill to create a bill for the purchase order.

    The system creates an accounts payable bill and opens the bill on the Bills and Adjustments (AP301000) form. Make sure that both purchase order lines have been added to the bill.

  3. On the form toolbar, click Remove Hold to assign the AP bill the Balanced status, and then click Release to release the bill.
  4. On the Projects (PM301000) form, open the HMBAKERY2 project.

    On the Cost Budget tab, review the actual values of the cost budget. Notice that the Actual Quantity and Actual Amount of the line with the INSTALL item have been updated and are now 4 and 320.00, respectively (see the following screenshot). Also notice that the actual expenses of the project (in the Actual Expenses box of the Summary area) are 3,320.00.

    Figure 1. Actual values of the budget updated by the purchase


You have completed the processing of the purchase of materials and services for the project and captured the cost of items to the project budget.