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.

  1. 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.

  1. 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

  1. 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.
  2. Open the Prepare Work Order window, populated with the work order which is connected to the project activity.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Right click on the Requisition Line and select the Requisition to Order menu option, to create a Purchase Order.
  8. 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.
  9. 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.
  10. Observe that the Purchase Order once released, will update the Committed cost to the activity.
  11. 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.)
  12. 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.
  13. 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.
  14. Observe that the Project Navigator/Connections tab will be updated with Voucher Row lines that will now report the Used cost.
  15. 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.
  16. 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.)