Service PO linked to Project

[Emily_Hsu]

Hello,
I’m testing to see what’s the best way to to issue service PO’s so that the cost can be included in a project.

Inventory - since we’re on average costing, using the same part (i.e. installation) for services from different projects with different costs will incur cost of sale for a specific order using the average cost, however we’d want the cost for a specific PO to be included in the project. Plus we will also need to receive the PO.

Other - The cost of the PO showed up under Estimated Material Cost in Project Entry and does not move to Actual after we pay the PO.

Subcontract Operation - this seems to work the best, but it’s a lot of work to create the job and add the subcontract, then link to the PO just to get the cost into our projects.

Any recommendation will be greatly appreciated!
Thank you in advance.
Emily

[Mark_Wonsil]

Have you tried JobMaterial?

[Banderson (Brandon Anderson)]

I believe you could use a project job, and put the parts that you need to order on the project job. You could either to parts (materials) as buy direct or a subcontract operation. Then just keep adding to the things you need to the project job.

[Emily_Hsu]

Yes and that also requires us to receive the PO. Just checking to see if there’s anything we can do without having to receive service PO’s.

[Emily_Hsu]

Anything we can do to avoid having to create a job for the PO?

[Mark_Wonsil]

Did you use try using the Job that already exists for the Phase? I seem to recall that went to Other Material or something similarly named.

[Emily_Hsu]

So the $500 is my buy to other PO and $100 is job material. I actually can’t really see where that $100 went on here but it’s included in the Projected Total.

[Mark_Wonsil]

Does $100 show on the Phase Job (in the WBS Phases tab) for the Project Job of the Phase used on the Purchase Order?

[Emily_Hsu]

I didn’t create a phase for my test project but I tried it just now (also processed Build Project Analysis) and the $100 is still nowhere to be found

[Mark_Wonsil]

I set up a Test Project with one Phase and made sure the Project and Phase Jobs existed:

Entered an OTHER PO type with a Part on the Fly for $100 USD. On the Release Tab, I entered the Project and Phase.

Then I received the PO. I checked the Phase Costs:

Did a Build Project Analysis and the cost shows in the Project too.

[Emily_Hsu]

Oh I see. So we need to receive the Other PO. Thank you so much! This will work perfectly!

[Mark_Wonsil]

Now, checking back to your first post, can you explain what we mean by Service PO?

[Mark_Wonsil]

@Emily_Hsu

Oh I see. So we need to receive the Other PO

Yes. This allows AP to pay it as well.

[Emily_Hsu]

PO for services like installation, measure and take down.

[Mark_Wonsil]

If you want to use Subcontracting lines, you can use the “Add A WBS Phase Operation” and choose a Sub-Contract Operation. A lot simpler than opening a new job and linking it.

Enter a Subcontract line on the PO. The Operation didn’t show but I could type it in. Since it’s a project phase job, I didn’t have to update the Release tab. Kinetic does it automagically.

Received the item and ran the Build Project Analysis.

[Emily_Hsu]

Thank you so much, Mark! This might work better since the cost is showing up in a different bucket in Sub Contract so that it doesn’t get mixed in with Materials.