Project Inventory Tracking: To Track Project Inventory by Quantity

The following activity will walk you through the process of managing project inventory with tracking of quantities of the items being purchased or sold for a project.

Story

Suppose that the Thai Food Restaurant customer has ordered juicer installation from the SweetLife Fruits & Jams company for the newly opened restaurant: two juicers will be installed this month, and three more next month. As has been agreed upon with the customer, the customer will pay $2,900 for the installation of each juicer, which includes the cost of the juicer and the cost of installation services with a 20% markup.

On January 30, 2023, the SweetLife project accountant created a project to handle the tracking and billing of the juicer and the provided services. Then the project accountant ordered five juicers to be installed, costing $2,000 each, from the Squeezo Inc. vendor. The juicers have been delivered to SweetLife’s warehouse to be stored until the work is started. The project accountant needs to be sure that the juicers will be reserved for the project and will not be sold or used for any other project. Further suppose that on February 15, 2023, the first stage of work has been completed: two juicers have been delivered and installed at the customer’s place.

Acting as the project accountant, you will purchase the project-specific items. Then you will issue the items from inventory for the project and record expenses to the project.

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 the project accounting functionality
  • Project-Specific Inventory, which provides enhanced capabilities for tracking project inventory
  • Inventory and Order Management, which provides the sales order and purchase order functionality
  • Inventory, which provides the stock item functionality
• On the Generic Inquiry (SM208000) form, the Project Stock (GI640591) generic inquiry has been configured and published.
• On the Vendors (AP303000) form, the SQUEEZO vendor has been created.
• On the Customers (AP303000) form, the TOMYUM customer has been created.
• On the Projects (PM301000) form, the TOMYUM14 project has been created and activated. In the project, Track by Project Quantity is selected as the inventory tracking mode.

Process Overview

On the Purchase Orders (PO301000) form, you will create a purchase order with the lines related to the project. You will receive the purchased items to a company's warehouse by processing a purchase receipt on the Purchase Receipts (PO302000) form. Then you will process an inventory issue transaction on the Issues (IN302000) form to record that two juicers have been used for the first phase of the project. Finally, you will review the Project Stock (GI640591) inquiry form to see the stock available for the project.

System Preparation

Before you start creating a project and processing a purchase, do the following:

1. Launch the MYOB Advanced website, and sign in as a project manager. You should sign in 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 Advanced screen, make sure that the business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Purchasing Project Inventory

To process 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:
   • Type: Normal
   • Vendor: SQUEEZO
   • Description: Purchase of juicers for the project
   • Date: 1/30/2023
3. On the Details tab, add a purchase order line, and specify the following settings in the added line:
   • Inventory ID: JUICER15
   • Warehouse: EQUIPHOUSE (specified automatically)
   • Order Qty.: 2
   • Unit Cost: 2,000 (specified automatically)
   • Project: TOMYUM14
   • Project Task: PHASE1
   • Cost Code: 00-000
4. Add one more purchase order line, and specify the following settings in the added line:
   • Inventory ID: JUICER15
   • Warehouse: EQUIPHOUSE (specified automatically)
   • Order Qty.: 3
   • Unit Cost: 2,000 (specified automatically)
   • Project: TOMYUM14
   • Project Task: PHASE2
   • Cost Code: 00-000
5. On the form toolbar, click Remove Hold. Then click Enter PO Receipt to create a purchase receipt for the purchase order.
6. On the form toolbar of the Purchase Receipts (PO302000) form, which opens with the created purchase receipt, click Release.
7. Open the Project Stock (GI640591) inquiry form and review the project inventory for the TOMYUM14 project. For the PHASE1 project task, two juicers are in stock, as shown in the following screenshot. For the PHASE2 project task, three juicers are in stock.

   
   
   

Step 2: Issuing a Stock Item for the Project

To directly issue stock items for the project (to record that two juicers have been delivered to the customer) and capture the issued cost to the project, do the following:

1. Open the Issues (IN302000) form.
2. On the form toolbar, click Add New Record, and in the Summary area, type Two juicers sent to project site in the Description box.
3. In the Date box, select 2/15/2023.
4. On the table toolbar of the Details tab, click Add Row, and in the row, specify the following settings:
   • Tran. Type: Issue
   • Inventory ID: JUICER15
   • Warehouse: EQUIPHOUSE (specified automatically)
   • Quantity: 2
   • Unit Price: 2,500 (specified automatically)
   • Reason Code: INISSUEPROJ
   • Project: TOMYUM14
   • Project Task: PHASE1
   • Cost Code: 00-000
5. Save the inventory issue transaction, and release it.
6. Open the Project Transaction Details (PM401000) form.
7. In the Summary area, specify TOMYUM14 as the Project, and make sure the other boxes are cleared. Review the only line in the table, which is the project transaction that has been generated on release of the inventory issue. The amount of the transaction in the Amount column is $4,000. This is the total cost of the items, which is recorded as project expenses. The generated project transaction has debited the MATERIAL account group, to which the expense account of the stock item is mapped.
8. On the Projects (PM301000) form, open the TOMYUM14 project.
9. On the Cost Budget tab, make sure that the line with the PHASE1 project task and the JUICER15 inventory item was created based on the inventory issue you have released. The actual amount of the line is 4,000, which is the amount of the related project transaction, and the actual quantity is 2.
10. Open the Project Stock (GI640591) inquiry form and review the project inventory, as shown in the following screenshot.

    
    
    

    Notice that when you processed the inventory issue transaction, the system issued from inventory the juicers that were purchased for the PHASE1 project task.