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Create a project contract to invoice for units of delivery [AX 2012]

Updated: October 11, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Use these procedures to create a project and project contract, so that you can invoice a customer when you have completed a unit of delivery that is defined in the contract. The timing of the invoices is negotiated with the customer.

Example

Your organization offers to provide training for a customer’s products. The customer agrees to use your services for a total of five training sessions across the United States, at a cost of $10,000 per training session. Your organization bills the customer after each training session. In this example, the training session is the unit of delivery.

Use these procedures to set up a contract, an associated project, and the billing rules. The billing rules are used to calculate the amount that is included in invoices to the customer when the units of work that are specified in the project contract are delivered.

After you have created the contract and the project, you can set up the details of the project. For example, you can define the activities of the project and assign workers to the project.

Before you create a project that has billing rules, you must set up the following project information in the Project management and accounting parameters form:

  • Set up the number sequence that is used when you create a billing rule.

  • Set up a fee journal that is used by default to post invoices for a project contract that specifies units of delivery.

  • Set up any specific units of measure that are used when you create the billing rules. For example, create Session as a unit of measure.

Use this procedure to create a project contract for a unit of delivery project.

  1. Click Project management and accounting > Common > Projects > Project contracts.

  2. In the Project contracts form, on the Action Pane, on the Project contract tab, click Project contract.

  3. In the New project contract form, complete the following fields:

    • Project contract ID

    • Name

    • Funding type

    • Funding source

    • Sales currency – By default, this currency is used for customer invoices that are associated with the project contract. However, you can modify the sales currency for a specific customer invoice.

    Click OK. This information is copied to the header of the Project contracts form.

  4. In the Project contracts form, complete the rest of the required information for the contract. To change default values in the form, on the Action Pane, on the Project contract tab, click Edit.

Use this procedure to create a project and any subprojects that are associated with a contract.

  1. In the Project contracts form, on the Action Pane, on the Project contract tab, in the New group, click Project.

  2. In the Create project form, enter a project type of Time and material.

  3. Select a project group. A project group defines posting information for projects that are assigned to the group.

  4. Enter additional information about the project. For example, complete the following fields:

    • Project ID

    • Project name

    • Project group

    • Project contract ID – This field associates the project contract with the project.

      NoteNote

      The Project contract ID field is automatically filled with the number of the project contract from the Project contracts form. However, you can change the project contract number.

    • Customer

  5. After you have created the project, set the project stage to In process. For more information about how to set a project stage, see Modify a project stage.

  6. Enter any additional information that is required, and then click OK to create the project.

After you have created the contract and the associated project, use this procedure to create the billing rules for the contract.

  1. Click Project management and accounting > Common > Projects > Project contracts. Select a project contract.

  2. In the Project contracts form, on the Project contract tab, in the Set up group, click Billing rule.

  3. In the Billing rules form, click New.

  4. In the Line type field, select Unit of delivery.

  5. On the Billing rule line details FastTab, in the Unit field, select a unit of measure that is related to the project contract.

  6. In the Quantity field, enter the total number of units to deliver in the project contract.

  7. In the Unit sales price field, enter the price per unit. The total amount for the billing rule is automatically calculated.

  8. In the Project field, select the project or task that uses this billing rule.

  9. In the Category field, select a project category to assign to the fee transaction.

  10. You can enter a percentage to calculate the amount that the customer withholds from payments on an invoice. On the Payment retention terms FastTab, select the funding source, and then, in the Retention percentage field, enter the retention percentage.

  11. Repeat this procedure to create additional billing rules for the project contract.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).
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