Tweaks to Project Budget in AX 2012 R2 CU6


In the forthcoming Dynamics AX 2012 R2 CU6 release, we made a few tweaks to the project budgeting form. First, we enabled multi-line delete in both the cost and revenue grids (it was previously one-at-a-time). This makes it much easier to clear out and start over when you are creating your budget. The second thing we enabled is a function to copy cost lines into revenue lines during budget entry. Previously, revenue lines would only get created if you were copying from forecasts or an existing project. We added a button to the revenue lines that will copy the cost lines, applying apply the pricing rules.

Note that this will only work if you are budgeting a time and materials project. Revenue for a fixed price project is not directly related to the costs so it does not apply in this case.

As you can see above, you need to specify the quantities for the cost lines in the details form (project budget only requires you to supply a budget amount and category). A quantity is required so that we can apply the sales price logic. Once you have your cost lines, click the Generate from cost budget button and it will create the revenue lines.

Stay tuned as we have several more enhancements to this area coming in CU7.

Comments (5)

  1. Anonymous says:

    Hi Brain Welcker ,

    Thank you for sharing good information about the project accounting in Ax 2012 R2.

    I have a question regarding the forecast of project .

    a) Is it mandatory to maintain the forecast ?

    b) If i want to create the forecast for hour , Item ,Expense in one form ,what is common place to define the forecast for all types , instead defining in separate forms ( project details form – > Plan tab – Forecast for Hour , Item , Expense)

    c) Without forecast shall i directly create the project budget ?

    d) Can i know the pros/cons if do not define the forecast ( but defined project budget )

    Thanks in advance

  2. Hi, Ially. Here are some answers:

    a) Is it mandatory to maintain the forecast ?

    No, project budget and forecast are separate but can work together. Forecasts created are at the transaction detail level while budgets are generally rolled up to the category. If you want to just use category budgets, you do not need to forecast. If you would like to use both, you can build the summarize the forecast into the budget.

    b) If i want to create the forecast for hour, item, expense in one form, what is common place to define the forecast for all types, instead defining in separate forms (Project details form > Plan tab > Forecast for Hour, Item, expense)?

    In R3, we introduced an "all forecasts" list page where you can see forecasts for all transaction types. However, data entry is still done on the individual forms.

    c) Without forecast shall I directly create the project budget?

    Yes, you can do this by typing in amounts for budgeted categories.

    d) Can I know the pros/cons if do not define the forecast (but defined project budget)?

    Some of the reports are driven from forecasts instead of budget. The main budget inquiry is the project budget balances form. Also, revenue recognition that compare actual to forecast to compute percentage complete require forecasts. Item forecasts can create demand in the supply chain module. Also, if you are using quantity-based forecast reduction – Project budget does not measure actual to budgeted quantities, only amounts.

  3. Anonymous says:

    Thank you for the reply Brain ,

    I have one more question that is for T&M WIP ,T&M without WIP and Fixed Price projects is it mandatory to run the Post costs button (  Project details /list form – > Manage tab – > Post costs )

    Generally for what projects we need to run  the Post costs ?

    Is it mandatory to run the post costs button for the above mentioned projects ?

    Thanks in advance.

  4. You do not need to use the post costs function for WIP projects that are invoiced as the invoicing function will move the costs (in addition to the revenue). The main function is if you have non-invoiced (cost) projects and you need to move the WIP. Also, if you are using the "no ledger" posting setting in project groups, you will have to use posts costs to move them.

  5. Anonymous says:

    Hi Brain ,

    Thank you for the reply .

    I have created a new project   T&M  – WIP Cost ( All post costs set to Balance in Project group form ) in AX 2012 R2.

    I need to purchase an item for this T&M WIP Cost project .

    Item – SQL Server  

    Qty – 1

    Cost  – $ 5000

    I have gone through the Advanced project accounting manual and says that it posts to

    Cost ItemAccount

    WIP Cost itemAccount

    Inventory Issue Account

    a) Could any one explain how these entries will post and why it is using the inventory issue account ?

    b) When it will  post to inventory issue account and what will be offset account ?

    c) Does the entries it applicable to stocked item and non stocked items purchased for project in Ax 2012 R2 ?

    d) Generally we can purchase the stocked items for project in Ax 2012 R2  or only Non – stocked items should purchase for projects ?

    Thanks in advance.