Adjusting project transactions in AX 2012

During the project’s life cycle we record project expenditures and sometimes we may realize that they were registered with incorrect information. It might be the activity, price, line property, category, quantity, dimension, sales tax or the project itself. Also possibly these wrong transactions might have been processed to the next level like project estimates (for fixed price) or invoice proposal (for time & material) and invoiced to the customer if the realization took place very late.

Nobody would want to keep that wrong information, which would certainly result in wrong project figures. So we need to basically correct these kind of transactions. This can be achieved with the help ofAdjust transactions feature in AX 2012 for Project management and accounting module.

There are few pre-requisites we need to setup in Project management and accounting parameters form before working with these transactions adjustments for projects. Let us understand them one by one.

Allow adjustment of transaction status:

This section basically gives the user choice to define which level of transactions can be adjusted against the project. We could choose between various options depending upon the requirement.

Posted: If this is marked, all transactions with posted status can be adjusted. This can be applicable for all project types.

Invoice proposal: If this is marked, all transactions which are incorporated in invoice proposal to bill the customer can be adjusted. We need to cancel the invoice proposal and re-create it again with the adjusted project transactions. This is applicable for time & material projects only.

Invoiced: If this is marked, transactions with Invoiced status can be adjusted.

Estimated: If this is marked, transactions which were contributed in the project estimate calculations can be adjusted. This is applicable for Fixed price and also the Investment project types.

Eliminated: If this is marked, transactions with status Eliminated can be adjusted. This is also applicable for Fixed price and Investment project types.

Adjustment:

This section gives the user options to define if the new transactions should always be created when posting the adjustment, related fields to be updated automatically when any of the field value is changed in the adjustment form and finally to choose the adjustment date as project date for the adjusted transactions.

Now let me give you an example scenario and take you through the detailed steps for adjusting project transactions.

Contoso Consulting USA (USSI) handles so many onsite projects and for one of their project assignment 2 resources were sent to the client place. These workers recorded the project efforts through times  heets and got them approved by their manager Kevin. Later when Kevin reviewed the project progress, he noticed that few time entries were recorded with wrong activity information and few others have incorrect category information. He decided to correct them before raising an invoice to the customer for the work done on the project assignment.

Detailed Steps:

• Kevin reviews the posted hours transactions via time sheet entries against the project and observes that one of the line has incorrect activity and category information. He then decides to correct them through adjustments function.

• He configures the adjustment settings in PMA parameters form to allow the adjustment for this Posted transaction, create a new adjustment transaction for activity change, update category information automatically while changing the activity on adjustment form and not to use adjustment date as the new project date on transaction.

• Navigate to Project management and accounting=> Common=> Projects=> All projects
• Select the project for which adjustment needs to be done, switch to the Manage tab and click on Adjust transactions button.

• In the opened Adjustments form click on Select button to select the criteria for adjustment, as in this case it would be Hour transaction type, our project type Time and material, Transaction status Posted, Line property Chargeable. Notice adjustment date defaults with current date and simply hit OK button.

• Now we get all the posted hour transactions for the project in the Adjustment form. Select the particular line we want to adjust and click on Adjust button.

• A new Adjust transactions form gets opened to change the values for selected line and also fields to default from setup overwriting transaction level values. Kevin changes the activity number accordingly and clicks OK.

• Observe that Activity number is changed in the adjustment lines. Here it does not change the Category though (in AX 2012 R3) and we have to once again re-select the activity number in adjustment lines for the category to get change.

• Once it is done, click on Check button to validate the adjustment line and click Post. Transaction will be posted with an informational message showing confirmation.
• Kevin reviews the posted transactions by clicking on Posted transactions button on the Manage tab of All projects list page. He verifies that the new adjustment transaction is posted with correct activity and category information this time.

• Now Kevin creates the invoice proposal for these transactions and just before submitting it to the Finance Manager for review he realized that one of the transaction had more than standard working hours (8 hours) which customer would not pay for.

• He needs to adjust this transaction, so he configures the PMA parameter form this time to allow adjustment for transaction with Invoice proposal status.
• He quickly selects the criteria and while adjusting he chooses to split this transaction into 2 lines.

• Observe that the hour transaction line splits into 2 lines. And then he chooses put 8 hours on 1st line and 2 hours on 2nd line and make it non-chargeable. He then posts the adjusted transaction.

• Once this is done he cancels the invoice proposal created previously and attempts to re-create the invoice proposal with the latest adjusted transaction. He observe that all transactions displayed with the correct information as required and non-chargeable transaction does not appear.

Similarly we can adjust the project transactions of other types as well. Note that while changing the project category we need to make sure the adjustment setup and corresponding prices before posting the adjustment.