Purchasing Inventory Parts to Project Connected Work Orders—Exercises
Basic Data Setup
Setting up Cost Elements
Purpose: The purpose of this exercise is to familiarize you with the data
that must be in place before you can perform the exercises below. You will need
to set up the relevant posting control rules and cost element mappings.
General exercise for
Setting up Cost Elements
Required Data
Connecting and Registering Work Orders
Purpose: The purpose of this exercise is to familiarize
you with the data that must be in place before you can perform the exercises below.
- Connect and register a work order to an activity. Prepare and plan the work
order by specifying material and purchasing requirements.
General exercise for
Connecting and Registering
Work Orders
Releasing Activities
Purpose: The purpose of this exercise is to familiarize you with the data
that must be in place before you can perform the exercises below.
- Release activities in your subproject structure.
General exercise for
Releasing
Activity
Main Exercise
Purpose: The purpose of this lesson is to show how Purchasing
Inventory parts through a connected work order will update the activity with costs,
hours and progress, as the work order is being executed.
Windows:
Prepare Work Order
Report In Work Order
Project Navigator/Activity
Project Navigator/Connections
Manual Supplier Invoice
Transfer Inventory Transactions
Voucher Entry
Purchasing Inventory Parts to Project Connected Work Orders
- Open the Project Navigator
window populated with your project and click on the activity to which
you have connected the work order. Note the Planned values in the
Activity tab.
- Open the Prepare
Work Order window, populated with the work order which is connected
to the project activity.
- Create a material line in the
Materials
tab and check that the value of the Supply Code field is Project
Inventory. This option will enable the parts to be in the Project Inventory
and the corresponding material requisition will be able to utilize these parts
only. If you have created purchase requisitions for inventory parts in
the
Requisitions
tab, note that a material requisition line is automatically created in the
Materials
tab in order to issue the purchased parts to the work order.
- Right click on the material line and select the Create Purchase Requisition
Line menu option to create a purchase request for this material. Observe
that Planned cost as well as the Planned Committed cost will be updated to the
activity.
- Right click on the Purchase Requisition and select the Release menu
option. Verify that the values update the correct cost elements, based on how
you set up the relevant posting control rules and cost element mappings.
- Click on the Project Navigator/Connections
tab to view how the cost is reported to the activity by each connected object.
You will notice that the Work Order object reports the planned cost while the
Purchase Requisition line reports the Planned Committed cost.
- Right click on the Requisition Line and select the Requisition to Order
menu option, to create a Purchase Order.
- Once this is created you will notice that the Planned Committed cost will
be updated by the Purchase Order since the Purchase Requisition line will be
closed.
- When you want to release the Purchase Order, right-click on the
Purchase Order window
that is populated with the relevant Purchase Order and select the Release
menu option.
- Observe that the Purchase Order once released, will update the Committed
cost to the activity.
- Receive the Purchase Order in IFS/Purchasing and you will notice that the
Used cost will be updated on the activity. Note that the Used cost that is updated
to the activity will depend on the inventory value for the Purchase part. (The
Used value will be further adjusted for the variance when the supplier invoice
is matched.)
- Create the invoice for your purchase part in the
Manual Supplier Invoice
window and match it with the relevant Purchase Order line. Right-click on the
Invoice entry header, point to Purchasing and select the Match PO
Receipts menu option to perform the above action.
- You will need transfer the inventory transactions related to your site in
the Transfer Inventory Transactions dialog
box and then create the vouchers for these transactions in the
Voucher Entry window.
- Observe that the Project Navigator/Connections
tab will be updated with Voucher Row lines that will now report the Used cost.
- Now you need to update the General Ledger for the Actual cost to be updated
to the activity. This can be done by clicking the right mouse button menu option
Instant Update General Ledger in the
Voucher Entry window.
- Observe that in the Project Navigator/Connections
tab the Voucher Row lines will be replaced by General Ledger Voucher Row, which
will update Used cost as well as Actual cost. Proceed with the process so that
the purchase order is received into inventory. On the project activity
Cost tab, observe that the Committed values
on the cost element for which you reported costs on the work order have decreased,
based on the purchase order price and the quantity received. Note also that
the Used values have increased based on the inventory transaction value for
your receipt. (The Used value will be further adjusted for the variance when
the supplier invoice is matched.)