Sales Order, Item requirements and Project PO (& auto created Item requirement) - Stage Cycle

Sales Order cycle:

1. Open Order 
2. Delivered 
3. Invoiced

Item requirements cycle:

1. Open Order (Sales order of 'Item requirements' created in the background, with Sales order line status 'Open order)
2. When the Item requirements is 'Packing slip' updated:
• The Item requirements and the associated Sales order line will be in status 'Delivered', if there is NO (cost price = 0) cost price on the item. The status will change to 'Invoiced' only when the project invoice is posted for that transaction.
• The Item requirements and the associated Sales order line will in status 'Invoiced', if there is (cost price = actual value) cost price on the item. 

Project PO and auto creation of Item requirement cycle (to consume cost on the project at the time product receipt):

1. Open Order (if the settings are such that 'Item requirement' is to be created on creation of PO, then an Item requirement record will be created with status 'Open order')
2. Received (when the PO line is received and if the settings are such that cost is to be consumed on the project, then the status of the 'Item requirement' and the associated 'Sales order' line is changed to 'Invoiced')
3. Invoiced 

Parameters for consuming the cost on the project upon project PO receipt:

Quick Notes -

1. Item requirement is a vehicle to document the material needed on the project. It is one of the ways suggested in the system, to consume the material cost on the project.
2. System creates ONLY ONE Sales order of type 'Item requirements' against a project. The status of the same sales order is updated from 'Open order' to 'Delivered' to 'Invoiced' based on the new 'Item requirement' lines. For e.g. the item requirement that is created on a project has one line and it is packing slip updated, then the associated sales order will be 'Invoice' updated. If a new item requirement line is created later, then a new line will be created in the same sales order and the status of the sale order will be changed to 'Open order' again. However the line which is invoiced previously will still be in invoiced state. 

A quick snapshot:

Thanks

Sarang

WBS and the display of Sales (Procurement) Category

By default the lines created on the WBS are of 'Hour' type. They are displayed on the 'Schedule planning' tab. However if you wish to define and plan for other project transaction types like, 'Expense', 'Item' and 'Fee', you need to navigate to the 'Estimated costs and revenue' tab. 'Hour', 'Expense' and 'Fee' type transactions are ok to define as you need to select an appropriate project category against the same.

However when it comes to items, it is still ok, if you have 'Items' defined, as there is an 'Item number' drop down to select the appropriate item. But if you only deal in procurement categories, then there is a bit of an issue. I mean an additional setup is required, so that procurement categories start showing in the WBS in the 'Sales category' drop down.

Procurement categories on WBS

To allow this to display the additional setup is as follows. The assumption here is a 'Procurement' type category hierarchy is already defined. This can be checked at :

Category hierarchies

Then the next step is to create a new 'Category hierarchy role association' of type 'Sales category hierarchy' and associate it with the 'Procurement' category hierarchy. The navigation to the 'Category hierarchy role association' is as mentioned in the screenshot above.

This setup will enable the display and selection of the procurement category in the WBS.

Thanks
Sarang