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

In the project execution phase of a project, you can subcontract activities.


Project manager Project manager Start Start Assign procurement categories to WBS lines Assign procurement categories to WBS lines To be able to subcontract WBS lines, for each to-be-subcontracted WBS line, define the procurement category. This procurement category is used to create purchase order lines for subcontract lines. The procurement category is used to define the type of work a WBS line relates to. This makes it easier to find the right subcontractor for a WBS line. Procedure 1. Go to Project management and accounting > Projects > All projects. 2. In the list, find and select the desired record. 3. In the list, click the link in the selected row. 4. Click Advanced WBS. 5. Click the Subcontracting tab. 6. In the list, find and select the desired record. 7. Click Assign category. 8. In the Category field, enter or select a value. 9. Click OK. Create subcontract from project Create subcontract from project Use this option to create a subcontract from a project's Advanced WBS. Procedure 1. Go to Project management and accounting > Projects > All projects. 2. In the list, find and select the desired record. 3. In the list, click the link in the selected row. 4. Click Advanced WBS. 5. Click the Subcontracting tab. 6. In the list, find and select the desired record. 7. Click Create subcontract. 8. Click Next. 9. In the Subcontractor field, enter or select a value. 10. Click Next. 11. Make selection to include Hours, Expenses, Equipment, and/or Items. 12. Click Next. 13. In the list, mark the selected row. 14. In the list, find and select the desired record. 15. Click Next. 16. 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

Activities

Name Responsible Description

Assign procurement categories to WBS lines

Project manager

To be able to subcontract WBS lines, for each to-be-subcontracted WBS line, define the procurement category. This procurement category is used to create purchase order lines for subcontract lines. The procurement category is used to define the type of work a WBS line relates to. This makes it easier to find the right subcontractor for a WBS line.

Create subcontract from project

Project manager

Use this option to create a subcontract from a project's Advanced WBS.

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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