Set Up projects, prices, and project posting groups
As a project manager, you can set up projects that define each of the projects that you manage in Business Central. Use the Project Setup page to define how you'll use project features.
For each project, specify various information:
- Prices for project items
- Project resources
- Project G/L accounts
- Project posting groups (required)
To set general information for projects
- Choose the
icon, enter Project Setup, and then choose the related link. - Fill in the fields as necessary. Hover over a field to read a short description.
Note
The Apply Usage Link by Default toggle on the Projects Setup page indicates whether project ledger entries are linked to project planning lines by default. Turn on the toggle to apply this setting to all new projects. You can enable or disable project usage tracking for a specific project by turning the Apply Usage Link toggle on or off on the Project Card page.
Specify a default location for project items
You can save time on data entry by specifying a default location and bin for projects on the Project Card page. When you create project tasks, project planning lines, and project journal lines for the project, the default location and bin are automatically assigned. You can, however, change the location code and bin on tasks and lines if needed.
If you define a To-Project Bin Code on the location, the bin code is populated when you select the location code. If your warehouse flow requires warehouse picks, you can also define other bins from which to consume items.
These fields are the defaults when you create project tasks. Existing project tasks don't change.
There are a few things to know about using default locations:
- For project tasks, if you define a To-Project Bin Code on the location, the bin code is assigned when you select the location code. If your warehouse flow requires warehouse picks, you can also define other bins from which to consume items.
- For project planning lines, the Location Code is based on the value selected on the project planning line when you select an item. If a bin code isn't defined for the project task, the bin from the default bin content is selected. You can change both values manually.
- For project journal lines, the Location Code is based on the value selected on the job journal line when you select an item. If a bin code isn't defined for the project task, the bin from default bin content is selected. You can change both values manually.
Invoice multiple customers for project tasks
When projects involve multiple customers, billing the right customers for the right tasks can be challenging. Business Central makes billing less complex by letting you specify the bill-to and sell-to customers on each project task line, so you can automatically generate invoices for the correct customers. To learn more about invoicing multiple customers, go to Invoice one or more customers for project tasks.
To set up project usage tracking
When you're working on a project, you might want to know how your usage is tracking against your plan. To explore usage, you can create a link between your project planning lines and the actual usage. The link lets you track your costs and understand how much work remains. By default, the project planning line type is Budget, but using the line type Both Budget and Billable has similar effects.
After you set up usage tracking by turning on the Apply Usage Link by Default toggle, you can review information on the project planning line. For example, you can set the quantity of the resource, item, or general ledger account. You can also set the quantity to transfer to the project journal. The Remaining Quantity field on the project planning line shows what remains to transfer and post to the project journal.
Note
If the Apply Usage Link is chosen on the project, and the Line Type field on the project journal line or purchase line is Billable, new project planning lines of the line type Both Budget and Billable are created when you post the project journal or purchase document.
For more information, see Record Usage for Projects and Manage Project Supplies
Important
If you don't specify a value in the Line Type field on the project journal line or purchase line, project planning lines aren't created when you post the project journal or purchase document.
To set up prices for resources, items, and general ledger accounts for projects
Note
In 2020 release wave 2, we released new processes for setting up and managing prices and discounts. If you're a new customer, you're using the new experience. If you're an existing customer, whether you are using the new experience depends on whether your administrator has enabled the New sales pricing experience feature update in Feature Management. For more information, see Enabling Upcoming Features Ahead of Time.
You can set up prices for the items, resources, and general ledger accounts related to a project.
- Choose the icon, enter Project, and then choose the related link.
- Select the project, and then choose the Resource, Item, or G/L Account action.
- On the Project Resource Prices, Project Item Prices, or Project G/L Account Prices pages, fill in the fields as necessary.
When you choose a resource, item, or general ledger account for a project, Business Central uses information in the optional fields on project planning lines and project journals. The following table explains how.
| Column1 | Column2 |
|---|---|
| Project Resources | The Project Task No., Work Type, Currency Code, Line Discount %, and Unit Cost Factor fields. The value in the Unit Price field for the resource is used on project planning lines and project journals when you enter a resource, or a resource assigned to the resource group. This price overrides prices specified on the Resource Price/Resource Group Prices page. |
| Project Items | The Project Task No., Currency Code, and Line Discount % fields. The value in the Unit Price field for the item will be used on the project planning lines and project journals when this item is entered. This price overrides the regular customer price (the "best price" mechanism) for items. To use the regular customer price, don't specify project item prices for the project. |
| General Ledger Accounts | The information in the Project Task No., Currency Code, Line Discount %, Unit Cost Factor, and Unit Cost fields will be used on the project planning lines and project journals when this general ledger account is entered and added to a project. When you choose a general ledger account, project planning lines and project journals use the value in the Unit Price field for the general ledger project expense. |
To set up project posting groups
One aspect of planning projects is deciding which posting accounts to use for project costing. To be able to post projects, you set up accounts for posting for each project posting group. A posting group represents a link between the project and how it should be treated in the general ledger. When you create a project, you specify a posting group, and by default, each task you create for the project is associated with that posting group. However, as you create tasks, you can override the default and select a posting group that is more appropriate.
Note
You must set up accounts in the chart of accounts before you set up posting groups. For more information, see Set Up or Change the Chart of Accounts.
- Choose the icon, enter Project Posting Groups, and then choose the related link.
- Choose the New action, and then fill in the fields as described in the following table.
| Account field | Description | Used in WIP Type |
|---|---|---|
| Code | An identifier for the posting group. You can enter up to 10 characters, including spaces. | |
| WIP Costs Account | The WIP account for the calculated cost of the project WIP, which is a balance sheet capital asset account. | Applied Cost, Recognized Costs |
| WIP Accrued Costs Account | An account for the Cost Value or Cost of Sales method of WIP calculation. This account is for accrued expense liability on your balance sheet. When a WIP adjustment requires you to increase the usage costs that you post to your income statement, you post to this account. | Accrued Costs |
| Project Costs Applied Account | A balancing account to the WIP Costs Account, which is a contra for a negative expense account. Used when WIP Posting Method Used is set to Project. | Applied Costs, Recognized Costs |
| Item Costs Applied Account | Same as Project Costs Applied Account, but used when WIP Posting Method Used is set to Project Ledger Entry. | |
| Resource Costs Applied Account | Same as Project Costs Applied Account, but used when WIP Posting Method Used is set to Project Ledger Entry. | |
| G/L Costs Applied Account | Same as Project Costs Applied Account, but used when WIP Posting Method Used is set to Project Ledger Entry. | |
| Project Costs Adjustment Account | The balancing account to the WIP Accrued Costs account, which is an expense account. | Accrued Costs |
| G/L Expense Acc. (Budget) | The sales account that will be used for general ledger expenses in project tasks with this posting group. If left empty, the general ledger account entered on the project planning line is used. | |
| WIP Accrued Sales Account | The WIP account for the calculated sales value of the WIP, which is an accrued revenue account for your balance sheet. When a WIP adjustment requires you to increase the recognized revenue, you post to this account. | Accrued Sales, Recognized Sales |
| WIP Invoiced Sales Account | The account for the invoiced sales value of the WIP that is not able to be recognized. It is a balance sheet Unearned Revenue account. | Recognized Sales, Applied Sales |
| Project Sales Applied Account | The balancing account to the WIP Invoiced Sales account, which is a contra income account. | Applied Sales, Recognized Sales |
| Project Sales Adjustment Account | The balancing account to the WIP Project Sales Account, which is an income account. | Accrued Sales |
| Recognized Costs Account | The expense account that contains the recognized costs for the project. It is a debit expense account ordinarily. | Recognized Costs |
| Recognized Sales Account | The income account that contains the recognized income for the project. It is a credit income account ordinarily. | Recognized Sales |
See also
Set Up Project Management
Video: How to create a project in Dynamics 365 Business Central
Managing Projects
Finance
Purchasing
Sales
Work with Business Central
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