Activities

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.

To each calculation group, add the calculation variables that you want to use:

• To define formulas.
• As scheduled unit.

To each task, you can add a contingency.

A contingency is an additional value on top of the calculated value, without adding an extra estimate line to a task.

You can also use the contingency to, for example, add a risk or a margin.

The relevant calculations are:

• Bid value = Calculated value + Contingency + Index
• Calculated value = sum of Total sales prices of all estimate lines for the task.

To each calculation group, you can add formulas to calculate the quantities on estimate lines. You can add formulas for these transaction types:

• Hour
• Expense
• Item
• Equipment

For each transaction type, you can add several formulas.

In a formula, you can use:

• The variables as defined for the calculation group. Put each variable in square brackets: [variable].
• These symbols: + - / * ()

Use models in a calculation group to define a set of default formulas. You can define several models for each calculation group.

For each model, you can define a default formula for each of the transaction types. You can use a formula in several models.

Only add the required formulas to a model. For example, if only a formula for hours is required, don't define formulas for the other transaction types.

You can add a next period to the activity.

You can allocate the budget across the project timeline.

You can use the 'Advanced WBS' to allocate budget to a project using cost codes.

You can approve and post the timesheet lines that are marked as Completed.

Before you approve or post timesheet lines, review the registered:

• Equipment usage - On posting the timesheet line, an equipment journal is created and posted for the reported equipment usage.
• Item consumption - On posting the timesheet line, an item journal is created and posted for the reported item consumption.
• Expenses - On posting the timesheet line, an expense journal is created and posted for the reported expenses.

Also review the additional information:

• General remarks
• Equipment information
• Weather information
• Health and safety information
• Worker remarks

The customer verifies the progress bill proposal and informs you about the result: approved or rejected.

The project controller (or someone else) verifies the progress bill proposal before it is sent to the customer and informs you about the result: approved or rejected.

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.

If you want to track project inventory for a project, you must assign a project inventory number to the project.

As a result, you can track project inventory for the products with a tracking dimension group for which the Project dimension is active.

Assign a tracking dimension group, with the Project dimension active, to the products for which you want to track project inventory.

To each work breakdown structure line, you can apply an index.

If you apply an index to a project line or to a task with sub-tasks, the index is applied to all underlying tasks.

An index is an additional percentage on top of the calculated value, without adding an extra estimate line to a task.

You can also use the index to, for example, add a risk or a margin.

The relevant calculations are:

• Bid value = Calculated value + Contingency + Index
• Calculated value = sum of Total sales prices of all estimate lines for the task

The index is applied to the sum of the Calculated value and the Contingency.

Example: Calculated value=100, Contingency=20, Index=10%. The 10% index is applied to 120. So, the bid value is 132.

If already an index is applied to a task, an additional index considers the already available index.

You can change the default formulas for an estimate line. You can only change to formulas that are also defined for the same transaction type in the used calculation group.

You can change the default formulas for a task. You can only change to formulas that are also defined for the same transaction type in the used calculation group.

You can copy lines from another integration journal to the current integration journal.

You can do so, for example, if you need similar lines.

On copy, all the lines of the selected integration journal are copied to the current integration journal.

You can copy from other integration journals as often as required.

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.

To import a bid from a tender in Microsoft Excel format, an integration journal is required.

It serves as a medium of data transfer between the Microsoft Excel template and advanced WBS.

Before you can create an integration journal, create a project quotation, and go to the advanced WBS.

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.

Create a project change order to manage changes to a project's Advanced WBS.  Change type, change reason, and chance impact are optional fields.  The choices within those drop-down menus are defined by the user in the setup for Advanced project management.

The concept of project quotations is introduced to make an attractive offer to a customer as the first step of the project phase.

Using project quotations, you enter the services, basic contact information, special trade agreements and discounts, and estimated taxes and surcharges for a project.

You can also select the activities or tasks for a project and create a hierarchy of tasks and subtasks.

For each activity, you can enter details about the timing and duration of the activity, and about the skills and experience that are required for workers who perform the activity.

For more information, refer to Create a project quotation.

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

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

You can use templates to easily add (parts of) a work breakdown structure.
A template is a predefined work breakdown structure that you can reuse in several advanced work breakdown structures.

A template can contain predefined:

• Projects
• Activities
• Estimate lines
• Calculation data
• Cost codes

The project setup and price setup are not included in a template.
You can import a template beneath the root project or a subproject.

When you import a WBS template:

• The complete WBS as defined in the template is imported.
• The start dates of the imported tasks are defined based on:
  • The start date of the task to which you import.
  • The predecessor relations of the imported tasks.
• The standard work calendar of the destination project is applied to define the end dates of the imported tasks.

After a template import, you can change the imported WBS lines.

A work breakdown structure (WBS) is a description of the work to be done for a project.

It is a hierarchy of tasks that represents the composition of work, cost, and duration of each task.　

In Advanced project management, you can add these types of lines to a project quotation work breakdown structure:

• Project - You can add project lines to lines of type Project.
• Standard - You can add tasks to lines of type Project and Standard.
• Summary - You can add summary lines to lines of type Project. Summary lines don't have own estimate lines. Summary lines summarize the calculated values of the related detail lines.
• Detail - You can add detail lines to lines of type Summary and Detail.

On each WBS task, you can define the applicable calculation settings. You can do so on the creation of the WBS task or on an existing WBS task.

If you have defined a cost code standard and cost code level for a project quotation, you can define a cost code for each WBS line. If the cost code level is Transaction, you can also define a cost code for each estimated-costs-and-revenue line. So, estimated-costs-and-revenue lines of one WBS line can have different cost codes.

If you have defined a cost code standard and cost code level for a project quotation, you can define a cost code for each WBS line.

If you use cost codes in your project quotations, you need to define the applicable cost code standard and cost code level.

The default cost code standard and default cost code level are defined in the Advance project management parameters.

You can change these defaults on a project quotation work breakdown structure.

On each WBS task, you can define the applicable calculation settings. You can do so on creation of a WBS task or on a to-be-changed WBS task.

For a project change order work breakdown structure, for all project lines of type Fixed price, you define the Contract total. You can do so on the Quotation statement form in two ways:

• Simulate and transfer the contract total.
• Manually enter or change the contract total.

To simulate the contract total, you can use:

• Margin
  • The sales price minus the cost price (also known as gross margin).
  • Formula: sales price - cost price / sales price * 100%
  • Example: if a sales price is $100 and the cost price $70, the margin is $30. Or, stated as a percentage, the margin percentage is 30%
• Markup
  • The amount by which the cost price is increased to derive the sales price.
  • Formula: sales price - cost price / cost price * 100%
  • Example: a markup of $30 from the $70 cost price yields the $100 sales price. Or, stated as a percentage, the markup percentage is 42.9%.

For a project quotation work breakdown structure, for all project lines of type Fixed price, you define the Contract total.

You can do so on the Quotation statement form in two ways:

• Simulate and transfer the contract total.
• Manually enter or change the contract total.

To simulate the contract total, you can use:

• Margin
• The sales price minus the cost price (also known as gross margin).
• Formula: sales price - cost price / sales price * 100%
• Example: if a sales price is $100 and the cost price $70, the margin is $30. Or, stated as a percentage, the margin percentage is 30%
  
  
• Markup
• The amount by which the cost price is increased to derive the sales price.
• Formula: sales price - cost price / cost price * 100%
• Example: a markup of $30 from the $70 cost price yields the $100 sales price. Or, stated as a percentage, the markup percentage is 42.9%.

On the project quotation work breakdown structure, you can define the project setup:

• For the root project line - You can change the default project type and project group as retrieved from the Advanced project management parameters.
  Before you transfer the project quotation to a project, you must at least define a project contract for the root project line.
• Optionally, for other project lines - If specific project setup is required, you can override the project setup as inherited from the root project 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.

You can distribute the budget over the remaining periods.

A work breakdown structure (WBS) is a description of the work to be done for a project.

It is a hierarchy of tasks that represents the composition of work, cost, and duration of each task.　

For each activity in the work breakdown structure, you can define the estimated costs and revenue that are required to complete the activity.

Estimated costs and revenue

For an advanced WBS, you add estimated costs and revenue lines of these types:

• Hour: Use this type to specify the number of hours.
• Item: Use this type to specify the items and related costs.
• Fee: Use this type to add a fee to be charged when an activity is done.
• Expense: Use this type to specify any expenses that are required for an activity. For example, travel costs and hotel costs.
• On account: Use this type for fixed price projects to create invoices.
• Equipment: User this type to specify which equipment is required and how long it is required.

Each task in the work breakdown structure, with the effort (hours) filled in, automatically results in an hour line in the estimated costs and revenue.

On the Advanced project management parameters, you can select the create quotation lines from WBS check box.

As a result, if you close the Advanced WBS page, for each estimated costs and revenue line, a project quotation line is created automatically.

For each task in the project change order work breakdown structure, you can change the estimated costs and revenue lines. You can also add new lines or remove existing lines.

Each task in the work breakdown structure, with the Effort (hours) filled in, automatically results in an hour line in the estimated costs and revenue.

On the Advanced project management parameters, you can select the Create quotation lines from WBS check box. As a result, if you close the Work breakdown structure form, for each estimated costs and revenue line, a project quotation line is created automatically.

For more detailed information, refer to Create a work breakdown structure.

If you use a calculation group on a task, you must enter the values for the variables.

You can use project logistics to firm the planned orders for a project.

When you create a project contract, you can set up the customer payment retention terms. Both the percentage-of-work-completed retention terms and the progress-amount retention terms are shown if you click the drop-down in the Customer payment retention terms field on the Project contract form.

For more information, refer to Add customer retention terms to a project contract.

On a project change order work breakdown structure, you can:

• Add three types of lines:
  • Project - You can only add projects to the root project line.
  • Subproject - You can only add subprojects to project lines. You can add subprojects to both new and existing project lines.
  • Task - You can add tasks to any line in the work breakdown structure. You can add tasks to both new and existing lines.
• Change the values of existing lines. For a line of task type:
  • Project, you can only change the description.
  • Standard, you can change almost all values.
• Stop existing tasks.

For more detailed information, refer to Create a work breakdown structure.

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.

If you have submitted a project change order for internal approval, the proposed changes are transferred to the Change order forecast model as defined on the Advanced project management parameters.

As a project manager, for your projects, you can monitor the submitted changes that are pending approval.

Use project logistics to view the relation between a project and the orders that are directly or indirectly created for the project.
Project logistics gives you an overview of the selected project. All its sub-projects, activities, and related product demand lines, including BOM lines, are shown.

It also shows how these product demand lines are covered. Project logistics information is updated by the master plan.

This information is shown in a hierarchy with the project structure from the level that the project logistics is opened from. 

All project levels beneath the opened level are shown. Select a node in the hierarchy to view detailed information.

The coverage can be a hard allocation, but it can also come from master planning (anonymous orders).

The legend explains the used acronyms and the symbols.

Negotiate the project change order with the customer.

Negotiate the project quotation with the (potential) customer.

If the integration journal is created, you can open the related Microsoft Excel file. Enter all relevant data from the tender into this Microsoft Excel file.

In the integration journal Microsoft Excel file, setup data, as defined in Dynamics 365 for Finance and Operations, is available in the Microsoft Dynamics Office Add-in pane at the right.

When you enter the tender data, use this setup data where applicable.

For example, WBS line types can be selected from:
•Project
•Activity
•Trans (for estimate lines).

If you enter any other text and publish, you get an error.

If a progress bill is approved by the customer, you can post and close the progress bill. As a result, an invoice journal is created for the project. For each invoiced sub-project, a separate on-account line is added to the invoice journal.

If a progress bill is approved internally, you can post the revenue on the project based on the progress bill. 

You can do so, to claim the revenue internally before the customer has approved the progress bill. 

As a result, a fee is posted.
To review the posted fee, on a projects page, on the Action pane, on the Project tab, in the Journals group, click Fee.

You can print the progress bill to support the internal approval and customer approval.

The progress bill report has:

• A header section with the totals for the progress bill and the totals for the full project.
• A section with the progress details for each activity.

If you have used summary and detail lines in the work breakdown structure of your project, only the summary lines are printed.

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

When you have entered the tender data in the Microsoft Excel file, you can publish it to the integration journal.

If the Microsoft Excel file has any invalid data, you get error messages.

You can make the required changes in the Microsoft Excel file and publish it again.

When you have imported the WBS data from Microsoft Excel to the integration journal and reviewed the integration journal lines, publish the integration journal.

On publish, all integration journal lines are transferred to the Advanced WBS.

You can publish an integration journal only once.

When published, you cannot change the integration journal.

If changes are required, you can do so in the Advanced WBS.

As a result of the negotiations with the customer, you can register these responses:

• Confirm - The customer accepts the project quotation, and the project can be started.
• Revise - The customer requires changes to the project quotation.
• Lost quotation - The quotation does not lead to a sale. You can update the status to Lost. This ends the project quotation process.

For more information, refer to Update project quotation.

As a result of the negotiations with the customer, you can register these responses:

• Submit- submit to the approval step
• Approve- approves the project change order
• Confirm - The customer accepts the project change order, and the changes can be transferred to the project.
• Cancel - This ends the project change order process.

Once confirmed, this project change order can be transferred to the project.

If applicable, retentions are calculated automatically based on the retention terms that are linked to the project contract.

If you post a progress bill, automatically a record is created for the project in the Request retained amount. 

You can create an invoice proposal for retained amounts.

You can remove a project inventory number on a project. This is only applied to new transactions for the project. Existing transactions aren't changed.

You can use the daily timesheet to report hours daily. You can also report, for each line in the timesheet, the related:

• Equipment usage
• Item consumption
• Expenses

You can report the equipment usage hours in the Equipment journal.

You can use the Hour journal to report hours that you spent on a project.

You can use the weekly timesheet to report hours on a weekly basis. You can also report, for each line in the timesheet, the related:

• Equipment usage
• Item consumption
• Expenses

WBS calculation updates the bid rate and bid value for each task.

The relevant calculations are:

• Bid value = Calculated value + Contingency + Index
• Calculated value = sum of Total sales prices of all estimate lines for the task
• Bid rate = Bid value / Forecast quantity in Scheduled unit
• Calculated rate = Calculated value / Forecast quantity in Scheduled unit

You can manually change the bid rate and bid value. If you do so, these are automatically locked.

If the bid rate and bid value are locked and you run the WBS calculation:

• The bid rate and bid value aren't changed if:
  • Prices are changed.
  • You add a contingency.
  • You apply an index.
• The bid value is changed if quantities are changed on a task. In this case, the locked bid ratio is used to calculate the new bid value.

You can unlock the bid rate. To do so, on the Advanced WBS page, on the calculation fast tab, clear the Lock bid rate check box.

If you use cost codes, for each project quotation, you can review the cost value, bid value, and margin by cost code.

After the Microsoft Excel data is published to the integration journal, you can review the created integration journal lines.

You cannot make any changes to the integration journal lines.

If any changes are required, you can do this in the Microsoft Excel file.

When done, publish the Microsoft Excel file again to the integration journal.

If a project change order is submitted, internal approval of the project change order can be done. The user, to whom the approval is assigned, gets a task.

As a result of the project change order approval, you can choose these options:

• Approve - The project change order can be sent to the customer.
• Redesign - Changes are required to the project change order. Its status is set to Created.
• Delegate - Assign the project change order to another reviewer.
• Cancel - The project change order is stopped.

If a project quotation is submitted, internal approval of the project quotation can be done. The user, to whom the approval is assigned, gets a task.

As a result of the project quotation approval, you can choose these options:

• Approve - The project quotation can be sent to the customer.
• Redesign - Changes are required for the project quotation. Its status is set to Created.
• Delegate - Assign the project quotation to another reviewer.
• Cancel - The project quotation is stopped.

On the project change order work breakdown structure, review the project setup for newly added (sub-)projects. If specific project setup is required, you can override the project setup as inherited from the root project line.

If the setup of the work breakdown structure or a part of it is complete, run the WBS calculation.

As a result, based on the calculation setup, this data is calculated.

• Estimate line quantities if impacted by formulas or variables.
• Totals for both cost values and sales values.
• Rates.

If you want to change a part of the current work breakdown structure of the project, select this part and add it to the work breakdown structure of the project change order. Please note that to use the project change order function, the project must have originated as a project quotation using the Advanced WBS.

Send an approved external project change order to a customer as an option.  This requires a template to be added to the Advanced project management parameters> Project change order, using a .dotx format.  This is stored in Azure storage.

Send a project quotation to a customer and update the quotation status from Approved to Sent.

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

If you want to use cost codes in your project quotations and projects, set the default cost code standard and default cost code level.

You can change these defaults on a project quotation work breakdown structure. Note: If you change these settings on a project quotation work breakdown structure, and already cost codes are defined, these are lost.

If you use progress billing, set the progress billing parameters on the Advanced project management parameters.

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

You can use activity templates to faster 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.

Define the variables to be used:

• In formulas.
• As scheduled units in work breakdown structures.

You can define variables that differ from the units. But you can also link a variable to a unit.

Set up a category group to use for equipment. Set up as many category groups as needed to group your equipment.

For subcontract pricing, you can only use specific subcontract category groups. The required setup for these category groups is:

• The Subcontract check box is selected.
• The Transaction type is Expense.

For more information, refer to Create category groups for projects.

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.

The number of cost codes in the system can be almost unlimited.

However, for reporting or analysis it might be useful to group certain cost codes.

For this purpose, a cost code group can be defined.

• The use of cost code groups is mandatory

• The combination of cost code group + cost code standard is unique

• The cost code groups are mainly used for reporting and analysis to subtotal member codes

A cost code is always linked to a cost code standard.

The combination of cost code and cost code standard must be unique. 

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).

Cost codes (or job codes) can be defined in the system to represent an internal or external code which is used to represent a fixed activity or cost category.

Cost codes can be entered manually or can be imported using the standard Microsoft Dynamics AX tools or the Business Integration Solution (BIS).

• Cost code can be based on an external standard or list.

• Cost code can also represent an internal code which is used for reporting and analysis.

• Cost code must be linked to a cost code standard. The combination of cost code and cost code standard is unique.

Set up cost prices for equipment categories. You can set up cost prices for equipment categories by project, project group, resource, project contract, customer, role ID, or price group.

Set up cost prices for expense categories. You can set up cost prices for expenses by project, project group, resource, project contract, customer, role ID, or price group.

Set up cost prices for hours. You can set up cost prices per hour by project, project group, resource, project contract, customer, role ID, or price group.

If you use retention terms that are based on the percentage of work complete, set up the customer retention terms.

For more information, refer to Set up customer payment retention terms.

Use equipment category validation to control which project categories can be used on a project, to include equipment categories.

If you use equipment, set the equipment parameters on the Advanced project management parameters.

Below listed are the parameters for tender import that are included as a part of the set up for APM.

• Calculation group for tender import:
  Calculation group is used to convert the unit from the file into a scheduled unit.
  You need to make sure that all the units present in the tender import file are present as units in D365 FO and must be mapped to a variable in the calculation group.


• Default category:
  The category that is set up in the parameters will be flown into each transaction line by default and this can be changed too.
  

If you use retention terms that are based on an invoiced amounts schedule, set up the progress amount retention terms.

Example

Retention schedule:

Retention calculation:

Set up project categories based on the shared categories. Make sure to select the category group that is used for equipment.

Create the project categories to be linked to the subcontract category group.

When you create a project category:

• Use a shared category as created before.
• Use a subcontract category group as created before.
• Make sure that on the Project FastTab, the Subcontract is set to Yes and the Transaction type is set to expense automatically.

For more information, refer to Create categories for projects.

In project change orders, the actual project sales price setup for hours, expenses and fees is used. However, you can define project change order-specific price setup for specific categories.

These prices are applicable to the whole project change order. However, if you have defined a specific price for a sub-project, the project change order price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower work breakdown structure levels under the sub-project.

If you transfer a project change order to a project, for each project change order-specific price setup, a project-specific line is added to the related project sales price setup.

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.

In project quotations, the actual project sales price setup for hours, expenses, and fees is used.

However, you can define project quotation-specific price setup for specific categories.

These prices are applicable to the whole project quotation.

However, if you have defined a specific price for a sub-project, the project quotation price isn't applicable.

Instead, the sub-project-specific price is applicable to the sub-project and all lower work breakdown structure levels under the sub-project.

If you transfer a project quotation to a project, for each project quotation-specific price setup, a project-specific line is added to the related project sales price setup.

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.

Set up sales prices for equipment, using the available options to set default information.

Set up sales prices for expenses, using the available options to set default information.

Set up sales prices for fees, using the available options to set default information.

Set up sales prices for hours, using the available options to set default information.

Set up sales prices for subscriptions, using the available options to set default information.

Set up a shared category to use in your company or other companies. This is required before you can set up project categories.  

Create a shared category for each project category that you want to link the subcontract category group.

Set up default cost prices (expense) for work that you often or usually subcontract.

For subcontracting cost prices (expense), this setup is required:

• Use a subcontract Project category.
• Define the Scheduled unit.
• To set up a specific price for a specific subcontractor, also define the Subcontractor.

If you use subcontracting, set the subcontracting parameters on the Advanced project management parameters.

To be able to create subcontracts, a procurement category is required. The 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.

You can set up several procurement categories that can be used in subcontracts. To use a procurement category in subcontracts, this setup is required:

• In the General section, the Subcontract check box, is selected for the procurement category.
• In the Products section, one product of type Service is added to the procurement category. You can only add one product to a procurement category and a product can only be added to one procurement category.

For more information, refer to Set up and maintain procurement category hierarchies.

You can set up default sales prices (expense) for subcontracted work.

For subcontracting sales prices (expense), this setup is required:

• Use a subcontract Project category.
• Define the Scheduled unit.

You can use subcontractor payment retentions to withhold an agreed upon amount from the payments for the delivered work by a subcontractor. At a later moment, if no defects are identified, the retained amount can be released and paid.

To define the payment retention terms for subcontractors, the vendor payment retention terms are used. You can define these payment retention terms for vendors that are marked as subcontractor.

For more information on vendor payment retention terms, refer to Manage vendor payment retention for projects.

Hired subcontractor workers are not paid via salaries/payroll. They are paid via a purchase invoice that you receive from the subcontractor. The cost price of these hours can be different from the cost price (hours) of your own employees. Therefore, you can set up default cost prices (hour) for subcontractor workers.

You can set up subcontractor worker cost prices (hour), for these combinations:

• Category and Subcontractor.
• Category, Subcontractor, and Worker.

If you hire an external person, set up this person as a subcontractor worker.

This setup is required for a subcontractor worker:

• The Worker type is Contractor.
• On the Worker form, on the Employment page, in the Contractor details section, define a Vendor that is marked as Subcontractor.

For more information on hiring a new worker, refer to Key tasks: Workers.

To set up subcontractors, you use vendors. You can create a new vendor or mark an existing vendor as subcontractor.

For more information on setting up and maintaining vendors, refer to Maintaining vendor information.

On a project quotation work breakdown structure, you can use projects in the hierarchy.

The default sales prices for these projects are defined by the sales prices in the quotation margin.

However, for each project in the work breakdown structure, you can also define a specific sales price for specific categories.

These project-specific prices are applicable to the project and all lower work breakdown structure levels under the project.

However, if you have defined a specific price for a sub-project, the project-specific price isn't applicable.

Instead, the sub-project-specific price is applicable to the sub-project and all lower WBS levels under the sub-project.

If you transfer a project quotation to a project, for each (sub-)project-specific price setup, a (sub-)project-specific line is added to the related project sales price setup.

On a project change order work breakdown structure, you can use projects in the hierarchy. The default sales prices for these projects are defined by the sales prices in the quotation margin. However, for each project in the work breakdown structure, you can also define a specific sales price for specific categories.

These project-specific prices are applicable to the project and all lower work breakdown structure levels under the project. However, if you have defined a specific price for a sub-project, the project-specific price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower WBS levels under the sub-project.

If you transfer a project change order to a project, for each (sub-)project-specific price setup, a (sub-)project-specific line is added to the related project sales price setup.

If you have finished the project changes on a project change order, including the estimates and pricing setup, you must submit the project change order for review. A project change order must be approved internally before you can send it to the customer or transfer it to the project.

If you have finished the setup of the project quotation, including the estimates and pricing setup, you must submit the project quotation for review.

A project quotation must be approved internally before you can send it to the customer.

If a customer has confirmed a project change order, you can transfer it to a project.

As a result:

• The existing project forecasts are updated with the changes from the project change order.
• The pending changes, as created in the Change order forecast model, are transferred to the Forecast model for archived changes. And because, only changes to existing activities of existing projects are shown as pending changes in the forecasts, also only these changes are moved to the Forecast model for archived changes. So, new (sub-)projects or new activities, as added in the project change order work breakdown structure, are not shown as pending changes in the forecasts, and therefore also not transferred to the Forecast model for archived changes.
• If you stopped a task in the project change order work breakdown structure, the related task in the project work breakdown structure is not deleted. Only the related estimates costs and revenue lines are deleted.
• If you stopped an estimated cost and revenue line in a project change order work breakdown structure, the related estimated cost and revenue line is also deleted in the project work breakdown structure.
• New (sub-)projects, tasks, and estimated costs and revenue lines are added to the project work breakdown structure.

If a customer has confirmed a project quotation, you can transfer it to a project.

For more information, refer to Create a project from a quotation by using the Transfer to Project wizard.

When the integration journal is published to the advanced WBS, you can change the bid values and bid rates in the advanced WBS.

You can update these changes to the integration journal to keep the bid rates and bid values intact.

You can allocate budget to a project using cost codes.

Before you start a project, you can create, print, and post a so-called zero progress bill. You can create a zero progress bill once before a regular progress bill is created.

You can use the zero progress bill as an official statement at the start of a project to communicate the work breakdown structure, quantities, and prices.

Zero progress bill characteristics:

• A special journal is used for the zero progress bill. This journal is different from the regular progress bill journal. For the journal name, the 'Zero progress bill' check box is selected.
• Print a zero progress bill before you create and post a regular progress bill.

Before you proceed with the project change order, verify the design with the customer.

Before you transfer the project quotation to a project, verify the design with the customer.