Item requirement and Project PO receipt postings on project

Out of the box, whenever the project PO is receipted (Product receipt posted), the accrual transactions are posted on the GL (General Ledger) level but the cost is not posted on the project. The cost is posted on the project or consumed on the project only after the project PO is invoiced updated (Supplier invoice posted). To make the project PO receipt reflect on the project, there are parameters to be looked into. They are:

1. Include physical value on the Item model group
2. Create item requirement on the Project parameters
3. Item consumption on the Project parameter

'Include physical value' on the Item model group - This is a MUST if you wish the project to consume the cost at the time of product receipt. This parameter woks in conjunction with the other two parameters mentioned above. Assuming the other two parameters to be checked and assuming that this is NOT checked, then the relevant accounts will not be hit and the product receipt will have no impact on the project cost.

'Include physical value'

'Create item requirement' on the Project parameters - To allow the project to consume cost at the time of product receipt of the project PO, ITEM requirement is a MUST. If there is no item requirement, then the product receipt for the project PO, will not post any cost on the project. Item requirement can be created manually on the project as well. But the  significance of this parameter is, it creates the Item requirement record automatically, at the back of the project PO creation. The moment the project PO is created, the item requirement will also be created, if this parameter is checked. If 'Include physical value' is checked and 'Create item requirement' is also checked but 'Item consumption' is NOT checked, then at the time of product receipt the system will display a pop-up asking the user to click 'Yes' if he/she wishes to consume cost on the project.

'Item consumption' on the Project parameter - If the 'Create item requirement' is checked and if you wish to automatically consume the cost on the project at the time of product receipt, then user should check the 'Item consumption' parameter to 'Yes'. However if the 'Create item requirement' is turned off, but this parameter is turned on, the cost can be consumed on the project at the time of product receipt by creating the Item requirement manually and then posting the product receipt.

'Create item requirement' and 'Item consumption'

To sum the entire interaction between these 3 parameters and what needs to be done in each scenario with respect to the cost consumption on the project at the time of product receipt, i have created this table:

Three parameters and Project Cost consumption on Product Receipt

Thanks
Sarang