Setting up and maintaining Advanced project management

Before you can use Advanced project management, define the Advanced project management parameters.

You can use activity templates to quickly create tasks in the work breakdown structure.

For each activity template, you can define values and estimate lines that are used as default values for work breakdown structure tasks.

If you enter an activity template for a new task in the work breakdown structure, the default values of the activity template are copied to the task.

You can group activity templates to structure the activity templates and make it easier to find the proper activity template.

Use the Project tracking dimension to manage project-specific inventory. Activate this Project tracking dimension for the relevant tracking dimension groups. As a result, you can track project inventory through all transactions for the released products to which the tracking dimension group is assigned. The tracking is done in a similar way as for the Serial number and Batch number tracking dimensions.

Usually, you set up project inventory tracking for high-value products that require project-specific sourcing.

No project inventory tracking is required for products:

• That are unique and are only used for a specific project.
• That can easily be supplied; the products are always available in inventory or can be purchased or produced at short notice.

You can use cost codes to budget and track cost in a project. A cost code represents a fixed activity or cost category.

You can use:

• External codes, for example, based on an external standard or list. This can be required for external reporting.
• Internal codes, for example, for reporting and analysis purposes.

A cost code is always linked to a cost code standard. To each project quotation and related projects, one cost code standard can be linked. You can do so on the project quotation work breakdown structure root node. In a project quotation and the related projects, you can only use cost codes of the linked cost code standard.

Cost code standards are, for example, provided by these organizations:

• CSI (Construction Specifications Institute).
• NAHB (National Association of Home Builders).

You can group cost codes for reporting and analysis purposes.

To use equipment in project quotations and projects, the ‘Equipment’ transaction type is available. Define the categories for equipment in the same way as categories for hours.
Set up the equipment categories and related information to use equipment journal entries in your projects. You can set up equipment in Microsoft Dynamics 365 Asset management or in To-Increase Enterprise Asset Management solution.

Set up the cost prices and sales prices for project categories. Note that item cost prices are derived from setup in the Product management module.

You can set up:

• Cost prices for hours, expenses, and equipment.
• Sales prices for hours, expenses, equipment, fee, and subscriptions.

In construction projects, quantities are often calculated based on specific settings. In Advanced project management, this setup is done in calculation groups.

Use calculation groups to define:

• The formulas that are used to calculate the estimate line quantities for activities in the work breakdown structure.
• The models with the default formulas for each transaction type.
• The setup that is required for progress billing: a variable that is marked as scheduled unit. For progress billing, usually, the scheduled unit variable is a percentage.
• The setup that is required for subcontracting: a variable that is marked as scheduled unit and for which the unit is defined as well. Reason: Subcontracting uses purchase orders, and on the purchase lines a unit is required.
• A cost price (expense) or sales price (expense) for a specific scheduled unit.

You can use a construction template to represent a customer agreement to do a job (category) for a specific price.

On a construction template, you can define:

• A default category for a worker or for a worker and project.
• A default set of line properties. On the timesheets, if you use a construction template, you can only use the line properties as defined on the construction template. If you use the quick daily timesheet, these line properties are inserted automatically.

You can also use a construction template to define a special cost price or sales price for hours or equipment.

In a WBS, you can link activities to a calculation group for the scheduled unit and you can enter a forecast quantity. You can use quantity types to define the character of the activity in more detail. You can use these quantity types in the WBS:

• Provisional quantity - The forecast quantity for the WBS line is defined but flexible and can be exceeded. You can invoice the exceeding quantity and amount with the progress bill.
• Firm quantity - The forecast quantity for the WBS line is fixed and cannot be exceeded. To change the quantity, use a project change order.
• Information - The WBS line doesn't have a scheduled unit, forecast quantity, nor estimate lines. The WBS line is part of the WBS to hold notes or information.
• Global price - Quantities are not relevant for the WBS line, only the total price is relevant. The quantity is 1 for this type of WBS line.
• Provisional sum - The price is not calculated but defined upfront by the customer. The bid rate is used to enter and lock the price. Indirect costs allocation is not allowed for the WBS line.

You can use progress billing as an alternative way to invoice a project. In progress billing, you invoice the amount of work completed so far.

Before you can use progress billing, you must set the progress billing parameters on the Advanced project management parameters.

In progress billing, you can apply retentions. You can set up and use retentions that are based on:

• Percentage of work completed
• Invoiced amounts schedule

In construction business, it's common to:

• Subcontract subprojects or activities to another company, which does the work you. If you subcontract a subproject or activity, you purchase a service from a vendor. This service usually includes a combination of labor, equipment, and materials.
• Hire external persons to do (a part of) the work for you. If you hire an external worker, you purchase a service from a vendor. This service usually includes only labor.

Set up shown below is required for bid import.

• Initialize document templates
• Set up integration parameters