Billing Rule – Progress billing project management Microsoft Dynamics AX 2012

Hello Folks, let’s see one more billing rule - Progress billing in project management AX 2012
and Dynamics 365 for finance and operations (Same steps apply to D365)

Progress billing rule can be used when project billing needs to be done based on the work completed.  

Different billing rules mentioned my in previous post.

Let’s take an example:  there is deal with the customer for the Modular Kitchen with 1,50,000 Rs. For construction company. There is mutual agreement that company will bill based on work completed as required.

• Design
• Execution
• Install

Steps to follow:

I hope you know the below steps:

• Create project contract
• Create time and material project

So, let jump to main part of the progress billing rule

• Create project budget

For progress billing it is required to define the budget for the project so let’s define the budget for

• Hours: cost hours to be consumed to design, execute and install modular kitchen

For this check:  

• Project management parameter > cost control. Tick on use budget control
• Forecast models must be created: Remaining forecast and Original Forecast

Go to > All Projects > Plan tab > Project Budget

Create budget shown in below:

Budget approval is mandatory and for approval workflow has to be configured. To configure workflow go through Project budget approval workflow ax 2012

• Create Progress billing rule on project contract

1. Go to Project contracts and select the contract we created earlier.
2. Billing rule fast tab and click new. Now create as below
1. Line type = Progress
2. Project = ANP-00007 (Your project)
3. Category = Fee
4. Contract value = 150000

5. On selected projects click on chargeable categories and select as below:

• Hours transactions

Now create hours’ transaction for the project. Create hours’ journal for 32 hours of design category and post. Be sure to check cost and sales price

• Create invoice proposal

Go to Project > Manage tab > invoice proposal

It will show 22429.91 as invoice amount.

Let’s calculate this now:

I have setup cost amount per hours as 500. So 32 * 500 = 16000, so 14.9532 % of work has been completed as per budgeted cost.

14.9532 % of contract value is 33429.91.

Important:

Do not forget to define fee journal. Also setup default fee journal on project management parameter on journal tab

Cheers !!! comment if you like this post.

Number sequence 0 does not exist while invoice proposal ax 2012

Number sequence 0 does not exist while invoice proposal AX 2012. Project invoice proposal posting error

Today I face the issue while generating Invoice proposal for project.

I have used progress billing rule on project contract. As per configuration progress billing rule requires fee journal to post transactions which will allow to generate invoice amount based on transactions.

The issue is due to fee journal voucher series and number sequence define for this. The scope defined on number sequence is legal entity. This is what is creating issue, somehow it won’t able to find number sequence for legal entity while generating fee journal voucher number. See screen as below

Solution: Create new Number sequence with the scope as Company and attach to fee journal voucher series.

Automatic workflow approval Microsoft Dynamics AX 2012

There are different scenarios for workflow approval. once the workflow is created in Microsoft Dynamics AX.

In this post I will show simple steps for automatic workflow approval.

• Go to existing workflow. In my case it is review original budget for project
• Click on “Approve original project budget”. It will show screen as below

• Now on Action pane on the top click on Automatic actions
• Tick on enable automatic actions
• Click on Add condition and create condition as show below:

• Now in Auto complete action select “Approve”

Project budget approval workflow ax 2012

Project budget approval workflow Microsoft Dynamics AX 2012

Project management and accounting module in AX 2012 have budgeting functionalities. Where the budget for the projects can be defined by Hours, Item and Expense majorly.

Now when budget has been defined it is mandatory to approve the budget. Without budget approval it will not get any effect on project or calculation or project cost control. So budget approval is must. Let’s see how to create budget approval workflow.

1. Go to Project management and accounting > setup
2. Project management and accounting workflows
3. Create new and select “Review original budget workflow”
4. Now drag “approval original project budget” from left to right and link with start and stop as shown below:

5. Now double click on approval object

6. And click on step 1. It will show screen as below

7. Now click on basic settings on top and update as below:

8. Click on Assignment on left
1. Select “user” as assingment type
2. In next tab “User”. Select the user who will be responsible to approve the budget
3. Close the tab
9. Save and close the workflow.
10. Select “Active the new version” and click ok.

A budget rate type is not defined for the ledger. Select a budget rate type for the ledger before you record budget register entries

A budget rate type is not defined for the ledger. Select a budget rate type for the ledger before you record budget register entries

Microsoft Dynamics AX 2012

Solution:

1. Go to General journal > setup  > Ledger
2. Select “Default ” in Default budget exchange rate type