Project Specific Inventory - Internal R&D Project get item out of inventory

Hi ​@debbiereed72 

You do not want to create invoices. Please follow the steps below and let me know if they work for you.

1. Create a project

2. Ensure Inventory visibility is enabled in Project Preferences.

3. Use a project-related inventory transaction (with Project and Task specified).

4. Release the transaction.

On release:

• The inventory quantity decreases

• The inventory GL account will be credited

• The project expense account will get debited

• The project's actual cost will be updated

With the above steps, i dont think you will require any invoices

Hope this helps

Hi ​@debbiereed72 
 

If the material is for an internal R&D project and will not be invoiced, the standard out-of-box process is to issue the inventory to the project using an Inventory Issue transaction.

Process:

1. Go to Issues (IN302000).

2. Create a new Issue transaction.

3. Select the Inventory ID and warehouse.

4. Enter the Project and Project Task.

5. Release the document.

This will:
– Reduce physical on-hand quantity
– Credit the Inventory GL account
– Debit the Project cost (based on the item’s posting class / project settings)

No billing rule is required since the project is not being invoiced.

If you do not want the cost to remain as WIP, make sure the Project Task is configured to post costs directly to an expense account (or use an expense-type account group).

Hi ​@aryanjadhav50 and ​@pranavkhare34   The issue I am having is with PO’s. I don’t think I made that very clear in my original post. I am ordering on a PO - The Commitment/PO is linked to the project.  When I receive the items, it updates the project, but the GL and Inventory still retain the amounts. I can’t do an Issue because it’s not available to issue.. it’s already on the Project, from the PO Receipt.

Thank you ​@aryanjadhav50 … it’s a bit tricky, but I think I got it. In order to get it to Debit Project Cost it seems that I need a reason code on the Issue or else it just goes back into Inventory GL.

Thank you very much for the direction of using the Issues. I was thinking Issues would only be necessary to pull items from “free stock” and would not be necessary when purchasing specifically for a Project. However, if I think about this for Construction.. I can understand the need to Issue it to the project site.

Hi Debbie.  As long as the inventory is project specific it should pull the cost from the Cost Layer for the project and task.  The INCost table has a column to indicate if the cost layer is project.  There are 2 GIs in this article.

​@dgodsill97 Hi Dennis!  Yes, that I understand. The issue has been this… I create PO linked to project and receive the items. They show in the Project Cost Layer.  The problem is that they continue to sit in inventory in the GL and the quantity shows too.  I need to get them out of inventory and to an R&D Cost.  What ​@aryanjadhav50 provided - the need to do an issue - resolves the problem (and you must have a reason code for that issue to debit the R&D cost account).