Language:


Project Item Handling

Use this setting to control how Items of different Types are treated in the Job Costing module. The choices made here can be overridden for an individual Item/Project combination using the Specified Project Item Handling setting.

When you open the setting, the 'Project Item Handling: Inspect' window is shown. Change the options as required and then click the [Save] button in the Button Bar to save changes and close the window. Use the close box if you do not want to save changes.

Stocked Items only on
Use these options to choose whether you would like to be able to include Stocked Items on Sales or Purchase Orders that have been related to Projects (i.e. that have a Project Number on their 'Del Terms' and 'Terms' cards respectively), or both. This will apply to Structured Items as well.

For example, you choose to be able to include Stocked Items on Sales Orders that have been related to Projects. If you try to include a Stocked Item on a Purchase Order that has a Project Number, the error message 'Item not allowed due to Project Item Handling' will appear when you try to save the Purchase Order.

If you choose the Both option, you should take care when registering Stocked Items against Projects because there will be a risk of registering them twice: once from the Sales Order and once from the Purchase Invoice resulting from the Purchase Order. If you need to raise a Purchase Order for a Stocked Item that is to be supplied as part of a Project, either the Sales Order or the Purchase Order should carry the Project Number, but not both. One can be created from the Project Budget record using the 'Create Sales Order' or 'Create Purchase Order' function, the other should be entered directly to the Sales or Purchase Order register as appropriate.

A factor influencing the decision about whether Stocked Items should be allowed on Sales or Purchase Orders will be that the two methods calculate the prices charged to the Customer for Stocked Items in different ways. When a Project Transaction is created from a Sales Order, the Price is taken from the Sales Order, which in turn is the Price in the appropriate Price List or the Base Price of the Item. When a Project Transaction is created from a Purchase Invoice, the Price is taken from the Purchase Invoice amount plus the Item Markup %.

These options also influence the 'Create Purchase Order' and 'Create Sales Order' Operations menu functions on the Project Budget screen. If you choose to be able to include Stocked Items on Sales Orders, the 'Create Sales Order' function will transfer Stocked Items from the Project Budget to the Sales Order. The 'Create Purchase Order' function will not transfer Stocked Items from the Project Budget to the Purchase Order. This situation will be reversed if you choose to be able to include Stocked Items on Purchase Orders. This aspect of the Project Item Handling setting is not overridden by the Specified Project Item Handling setting.

Allow Plain Items on
Service Items can be used in Time Sheets and on Sales or Purchase Orders that have been related to Projects (i.e. that have a Project Number on their 'Del Terms' and 'Terms' cards respectively). Stocked Items can also be included in Sales or Purchase Orders depending on the choice made using the options above. You can also choose to be able to use Plain Items (purchases and materials) in Sales Orders, Purchase Orders and/or Time Sheets by checking these boxes. Plain Items cannot be used in Activities.

These options also influence the 'Create Purchase Order' and 'Create Sales Order' Operations menu functions on the Project Budget screen. If you choose to be able to include Plain Items on Sales Orders, the 'Create Sales Order' function will transfer purchases (i.e. Plain Items whose Treat Item as Material on Project box is off) from the Project Budget to the Sales Order. Similarly, if you choose to be able to include Plain Items on Purchase Orders, the 'Create Purchase Order' function will transfer purchases from the Project Budget to the Purchase Order. This aspect of the Project Item Handling setting is not overridden by the Specified Project Item Handling setting.

Project Item Pricing
Stocked, Service and Plain Items can be registered against Projects using Purchase Invoices and Expenses. In these cases, the price charged to the Customer can be calculated using one of two methods:
  1. by adding the Markup % of the Item to the Purchase Invoice or Expense amount.

  2. by adding the Markup % of the Item to its Base Price.
To use the first method, ensure Project Item Pricing is switched off. To use the second method, switch this option on. Please refer to the Pricing and Costs - Time, Purchases and Materials from Purchase Invoices and Expenses page for full details.