Goods for Project VS Goods for Project Inventory

In Dynamics SL 2011 one of these new features was addition of a new ‘Purchase For’ type in the Purchase Order Maintenance screen to improve the integration between the Project and Distribution modules.

In previous versions of Dynamics SL there were two ‘Purchase For’ types that were related to projects: “Goods for Project” and “Services for Project”. 

However, the “Goods for Projects” type is not fully supporting to update the inventory balance; No inventory impact during GRN though the items are physically available in warehouse till issuing to project. It would only create a project commitment; Project commitments created during the purchase is getting relieved during the AP Voucher itself. Supposedly, the commitment should be relieved only after issuing to project which is not the case with GP type. In Dynamics SL 7 and earlier you could either update inventory or create a project commitment, you couldn’t do both.

But now, with Dynamics SL 2011, any inventory purchased with the new “Goods for Project Inventory” ‘Purchased For’ type will create a project commitment and inventory will now be allocated for the designated project and task and consumed only by the designated project in the Sales Order Entry (40.100.00), Shippers (40.110.00), or Issues (10.020.00) screens.

In addition, any regular, non-committed inventory that is already in stock can be allocated to a project and then only consumed by that project in the previously mentioned Order Management screens.  This can be done with a new screen in the Inventory module called Project Inventory Allocation.  Allocating inventory in this screen will increase the “Inventory Allocated to Projects” quantity and reduce the “Quantity Available” quantity.  You can also unallocated inventory from projects with this screen.

The timing of the commitments and relieving of the commitments is also different between the two ‘Purchase For’ types.  With the “Goods for Project” ‘Purchase For’ type a project commitment was created when the Purchase Order was entered and the commitment was relieved when the voucher for the related receipt on the purchase order was entered.  In addition, the voucher also posted the ‘actual’ costs to the project.

With the “Goods for Project Inventory” ‘Purchase For’ type a project commitment is also created when the Purchase Order is entered, but the commitment is not relieved when the voucher is released.  Instead, it is not until the allocated inventory is entered on a Sales Order and the Inventory Issue batch that is created from the Order Management Sales Journal is released.  The Inventory Issue batch will not only relieve the commitment, but it will also create the actual costs that post to the project.