Project groups (form)

Article
10/09/2018

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click Project management and accounting > Setup > Posting > Project groups.

Use this form to create project groups and specify options for project groups.

Tasks that use this form

Create a project group

Change the project group

Set up a provision for foreseeable losses

Navigating the form

The following tables provide descriptions for the controls in this form.

Tabs

Tab	Description
General	Specify the search priority, Project or Category, for the ledger posting, and specify the line property of the selected project group. Also specify whether you want Microsoft Dynamics AX to check whether project budget is available before transactions are processed.
Ledger	Specify whether transactions are posted under Balance or Profit and loss. Also specify work in process (WIP) options for time and material projects. Note The No ledger and Never ledger options are available only for hourly journals.
Estimate	Set up options for estimates, the default cost template, and the default period code for Fixed-price projects. Also specify the categories to which estimate transactions are posted, and specify whether there is a provision for foreseeable losses for fixed-price projects and investment projects. Note Settings on this tab apply only to Fixed-price projects.
Cost accounts	Set the accounts that you want to use for this project group for cost-related posting types across all categories. Note The posting types that are listed on the Cost accounts tab correspond to the posting types that are listed on the Cost accounts tab in the Ledger posting setup form.
Revenue accounts	Set the accounts that you want to use for this project group for sales-related posting types across all categories. Note The posting types that are listed on the Revenue accounts tab correspond to the posting types that are listed on the Revenue accounts tab in the Ledger posting setup form.

Buttons

Button	Description
Setup	Open a menu that contains the following items: Ledger posting setup – Set up more specific cost accounts and sales price accounts for combinations of projects or project groups and categories or category groups. Project/group line properties – Set up defaults for the line property of the selected project group.
All projects	Open the All projects list page, where you can view only the projects that are attached to the selected project group.
Project control	Open a submenu with the following items, so that you can calculate and analyze financial data for the selected project group: Project statements Cost control Invoice control Hour utilization Cash flow Each form includes an option that you can use to export the calculated data to a PivotTable for Microsoft Excel.

Setup

Open a menu that contains the following items:

Ledger posting setup – Set up more specific cost accounts and sales price accounts for combinations of projects or project groups and categories or category groups.
Project/group line properties – Set up defaults for the line property of the selected project group.

All projects

Open the All projects list page, where you can view only the projects that are attached to the selected project group.

Project control

Open a submenu with the following items, so that you can calculate and analyze financial data for the selected project group:

Project statements
Cost control
Invoice control
Hour utilization
Cash flow

Each form includes an option that you can use to export the calculated data to a PivotTable for Microsoft Excel.

Fields

Field	Description
Project group	Enter a unique name for the project group. This name appears when you select the project group in project forms.
Name	Enter a descriptive name for the project group.
Project type	Select a project type. All projects that are associated with a specific project group must have the same project type. Parent projects do not have to be associated with the same project group or have the same project type as their subprojects. Note Depending on the project type that you select, some other fields on the form may be unavailable, or may contain default values that can’t be changed.
Default line property	Select the chargeable status of the line property that a project in this group is attached to by default. The statuses that your legal entity creates might have names such as Chargeable and Nonchargeable.
(Ledger posting group) Search priority	Specify whether the ledger posting is made according to the project settings or the category settings. When Microsoft Dynamics AX looks up accounts for ledger posting and searches for a match, this option specifies which attribute takes precedence. For example, if you select Project, the following lookup order is used: Project + funding source + category — This lookup option returns only a complete match Project + funding source + "ALL" category Project + "ALL" category Category + "ALL" project
(Line property group) Search priority	Specify whether the posting of the line property is made according to the project settings or the category settings.
Verify cost against remaining forecast	Select the check box to indicate that Microsoft Dynamics AX must verify that sufficient forecasted funds exist for the associated project type before a transaction is posted.
Post costs - hour	Specify the types of ledger accounts that hourly costs are posted to when hour transactions are posted: Profit and loss – Costs of hours are debited to the cost account and credited to the account when the journal is posted. This option is mandatory for fixed-price projects, investment projects, and cost projects. When this option is selected, revenue can be accrued on the hour transaction. Balance – Hours are debited to the WIP cost value account and credited to the payroll allocation account when the journal is posted. This option is optional for internal projects and time and material projects. No ledger – No posting is made on ledger accounts when hours are posted from journals. When hours on a time and material project are invoiced, the cost of hours is debited to the cost account and credited to the payroll allocation account. You can post the hour cost to the general ledger for both project types by running the Post costs job. Click Project management and accounting > Periodic > Time and material > Post costs. Never ledger – No posting is made on ledger accounts when hours are posted from journals. This option is mandatory for time projects and optional for time and material projects and internal projects. When this option is selected, revenue can be accrued on the hour transaction. Hour transactions are never posted to ledger accounts when journals are posted or invoices are created, and no ledger transactions are created.
Post costs - expense	Specify the types of ledger accounts that hourly costs are posted to when expense transactions are posted: Profit and loss – Costs of expenses are debited to the cost account and credited to the journal offset account when the journal is posted. This option is mandatory for fixed-price projects, investment projects, and cost projects. Note The journal offset account is not set up in Project management and accounting. Balance – Expenses are debited to the WIP cost value account and credited to the journal offset account when the journal is posted. This option is optional for internal projects and time and material projects.
Post costs - item	Specify the types of ledger accounts that item costs are posted to when item transactions are posted: Profit and loss – Costs of items are debited to the Cost account and credited to the item issue account when the journal is posted. This option is mandatory for fixed-price projects, investment projects, and cost projects. Note The item issue account is set up in Inventory management. Balance – Items are posted to the WIP - cost value - item account and credited to the item issue account when the journal is posted. This option is optional for internal projects and time and material projects.
On-account invoicing	Specify the ledger account to which on-account invoices are posted: Profit and loss – On-account invoices are posting to the Invoiced revenue - on-account account. Balance – On-account invoices are posting to the WIP - Invoiced - on-account account. Important For fixed-price projects, the On-account invoicing field is available only after you select a revenue recognition accounting rule on the Estimate tab.
Accrue revenue - hour	Select the check box to indicate that temporary sales values are accrued on time and material projects when you post hour transactions. The accrued sales value is reversed at the time of invoicing.
Accrue revenue - expense	Select the check box to indicate that temporary sales values are accrued on time and material projects when you post expense transactions. The accrued sales value is reversed at the time of invoicing.
Accrue revenue - item	Select the check box to indicate that temporary sales values are accrued on time and material projects when you post item transactions. The accrued sales value is reversed at the time of invoicing.
Accrue revenue - fee	Select the check box to indicate that temporary sales values are accrued on time and material projects when you post revenue in journals. The accrued sales value is reversed at the time of invoicing.
Revenue recognition accounting rule	Select a revenue recognition accounting rule for a fixed-price project. When you are working with a large fixed-price project, you can apply revenue recognition accounting rules to recognize cost and revenue in profit and loss. The following two methods are available for revenue recognition: Completed percentage – This method is used to recognize the revenue over the life of the project. Revenue is accrued based on the percentage of the project that has been completed and the contract value. Therefore, cost and revenue are matched during the project. During the project, the gross WIP value on the balance sheet is valued to the sales price. The completed percentage method represents a more optimistic approach to revenue recognition. Completed contract – When you choose this method, the contract value is capitalized as WIP and is not recognized as revenue in the Profit and loss balance account until the project is 100 percent completed. Costs are also capitalized on the balance sheet and not recognized until completion. Therefore, cost and revenue are matched in the profit-and-loss account at the end of the project. During the project, the gross WIP value on the balance sheet is valued to the cost price. The completed contract method represents a more conservative approach to revenue recognition.
Calculation method	Select the method to use to calculate transaction sales amounts in projects that belong to this project group. Note This option applies only to Fixed-price projects. Select one of the following options: (None) – Recognized revenue is posted as a single fee transaction that uses the project category that is set up for fee estimates. Markup percent - total – Recognized revenue is allocated to its associated hour, expense, and item transactions. The markup percentage that is assigned to each type is applied to the allocation. The transactions are then posted by transaction type instead of in a single fee transaction. Markup percent - estimate line – Recognized revenue is allocated per estimate line to its related hour, expense, and item transactions. The markup percentage that is assigned to each type is applied to the allocation. The transactions are then posted by transaction type instead of in a single fee transaction. Note that the full contract value must be allocated to estimate lines before the calculated revenue that is to be recognized can be posted to the general ledger.
Matching principle	Specify how the value is calculated when the estimate is posted. Sales value – All estimated revenue is posted to a single account. Production + profit – The estimated revenue is split, depending on whether it is related to the costs of production or profit. Note The Matching principle field is available only if Completed contract or Completed percentage is selected as the revenue recognition accounting rule.
Sales value	Select the category to which sales values are posted for estimate transactions. This field is available only for Fixed-price projects, and only if you select Sales value as the matching principle.
Production	Select the category to which production values are posted for estimate transactions. This field is available only for fixed-price projects, and only if you select Production + profit as the matching principle.
Profit	Select the category to which profit values are posted for estimate transactions. This field is available only for fixed-price projects, and only if you select Production + profit as the matching principle..
Accrued loss	Select the expense category to which accrued losses are posted for estimate transactions. This field is available only for Fixed-price projects and only if you select Completed contract in the Revenue recognition accounting rule field and select the Foreseeable losses check box.
Foreseeable losses	A selected check box indicates that a loss is recognized immediately if the total estimated costs exceed either the contract value for a fixed-price project or the maximum capitalization limit for an investment project.
Cost template	Select a cost template for the selected project group. A cost template controls cost estimates for an estimate project. It also specifies how the percentage of completion is calculated in projects that are posted according to the percent-complete revenue recognition accounting rule.
Period code	Select the period code that specifies how frequently estimates are calculated for this project group. A period code can align with a fiscal calendar a frequency such as weekly, monthly or quarterly. It can also have no set limits.