1. To-Increase Dynamics 365 for Finance & Operations
  2. Advanced project management
  3. Working with Advanced project management
  4. Create and manage subcontracts

Create subcontract from project quotation

In the quotation phase of a project, you can subcontract activities. However, you can only activate a subcontract if the project quotation is confirmed, and a project is created.


Project manager Project manager Start Start Define subcontracting setup on WBS line Define subcontracting setup on WBS line On a project quotation WBS, you can pre-define this subcontracting-related setup:Subcontract - Mark the WBS line to be subcontracted.Subcontractor - Define the default subcontractor for this WBS line. On creation of the subcontract, you can change the subcontractor. You define the subcontractor on the WBS line to get subcontracting prices for the WBS line.Procurement category - Define the procurement category that is used to create purchase order lines for subcontract lines. Procedure 1. Go to Project management and accounting > Quotations > Project quotations. 2. In the list, click the link in the selected row. 3. On the Action Pane, click Project quotation. 4. Click Advanced WBS Edit. 5. In the list, find and select the desired record. 6. Click the Setup tab. 7. Select Yes in the Subcontract field. 8. In the Subcontractor field, enter or select a value. 9. Click the Subcontracting tab. 10. In the list, find and select the desired record. 11. Click Assign category. 12. In the Category field, enter or select a value. 13. Click OK. Create subcontract from project quotation Create subcontract from project quotation You can create subcontracts for WBS lines to be subcontracted. You can create a new subcontract or add lines to an existing subcontract. Procedure 1. Go to Project management and accounting > Quotations > Project quotations. 2. In the list, click the link in the selected row. 3. On the Action Pane, click Project quotation. 4. In the Project Quotation Lines section, click Generate. Note: This step is required to be complete before you can create a subcontract. 5. Click Create quotation lines from WBS. 6. Click Advanced WBS Edit. 7. Click the Subcontracting tab. 8. In the list, find and select the desired record. 9. Click Create subcontract. 10. Click Next. 11. In the Subcontractor field, enter or select a value. 12. Click Next. 13. Make selection to include Hour transactions if required. 14. Make selection to include Expense transactions if required. 15. Make selection to include Item transactions if required. 16. Make selection to include Equipment transactions if required. 17. Click Next. 18. In the list, find and select the desired record. 19. Click Next. 20. Click Finish. Modify subcontract Modify subcontract If a subcontract is created, you can modify the original settings.At least, define the prices for the subcontract lines. The subcontract value on the line is the amount to be paid to your subcontractor.You can define the price and value in these ways:Enter a price in the Subcontract price field. The Subcontract value is calculated automatically: subcontract price * forecast quantity.Enter a total value in the Subcontract value field. The Subcontract price is calculated automatically: subcontract value / forecast quantity.The forecast quantity is copied from the related WBS line. Procedure 1. Go to Project management and accounting > Subcontracts > All subcontracts. 2. In the list, find and select the desired record. 3. In the list, click the link in the selected row. 4. Click Edit. 5. In the list, mark the selected row. 6. Edit fields as needed. 7. Click Save. Print subcontract Print subcontract You can print a subcontract report to confirm the negotiated scope and price. Procedure 1. Go to Project management and accounting > Subcontracts > All subcontracts. 2. In the list, find and select the desired record. 3. In the list, click the link in the selected row. 4. Click Subcontract report. 5. Select Update status to printed option as needed. 6. Make selection for Show hierarchy field. 7. Make selection for Show all field. 8. Click OK. Activate subcontract Activate subcontract You can activate a subcontract if the project quotations, to which the subcontract is related, are transferred to a project.On activation of a subcontract:One purchase order is created for each main project and subcontractor combination. If already a purchase order exists for a project-and-subcontractor combination, this purchase order is used.For each subcontract line, a line is added to the purchase order. These purchase order lines are created based on the procurement category. The item on the purchase order line is the service item as defined for the procurement category. Procedure 1. Go to Project management and accounting > Subcontracts > All subcontracts. 2. In the list, find and select the desired record. 3. In the list, click the link in the selected row. 4. In the list, mark the selected row. 5. Click Active. 6. Click Yes. Notes You can have this scenario:Change management is activated for purchase orders.A purchase order exists for a project-and-subcontractor combination.If you activate a subcontract for this project-and-subcontractor combination, the status of the existing purchase order is checked. If it is not yet approved, for each subcontract line, a line is added to the purchase order. If the workflow status of the purchase order is other than Draft, adding lines is blocked. In this case, a new purchase order is created. End End Print subcontract? Print subcontract? Yes No Only if the related project quotation is transferred to a project!

Activities

Name Responsible Description

Define subcontracting setup on WBS line

Project manager

On a project quotation WBS, you can pre-define this subcontracting-related setup:

  • Subcontract - Mark the WBS line to be subcontracted.
  • Subcontractor - Define the default subcontractor for this WBS line. On creation of the subcontract, you can change the subcontractor. You define the subcontractor on the WBS line to get subcontracting prices for the WBS line.
  • Procurement category - Define the procurement category that is used to create purchase order lines for subcontract lines.

Create subcontract from project quotation

Project manager

You can create subcontracts for WBS lines to be subcontracted. You can create a new subcontract or add lines to an existing subcontract.

Modify subcontract

Project manager

If a subcontract is created, you can modify the original settings.

At least, define the prices for the subcontract lines. The subcontract value on the line is the amount to be paid to your subcontractor.

You can define the price and value in these ways:

  • Enter a price in the Subcontract price field. The Subcontract value is calculated automatically: subcontract price * forecast quantity.
  • Enter a total value in the Subcontract value field. The Subcontract price is calculated automatically: subcontract value / forecast quantity.

The forecast quantity is copied from the related WBS line.

Print subcontract

Project manager

You can print a subcontract report to confirm the negotiated scope and price.

Activate subcontract

Project manager

You can activate a subcontract if the project quotations, to which the subcontract is related, are transferred to a project.

On activation of a subcontract:

  • One purchase order is created for each main project and subcontractor combination. If already a purchase order exists for a project-and-subcontractor combination, this purchase order is used.
  • For each subcontract line, a line is added to the purchase order. These purchase order lines are created based on the procurement category. The item on the purchase order line is the service item as defined for the procurement category.

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