In D365 FO, a project contract is required for the project. It defines the rules for funding and billing as well. You can add an indirect cost plan to a project contract. The indirect cost plan serves as default to any project that you create manually from a project contract.

Standard procedure

1.	Go to Project management and accounting > Projects > Project contracts.
2.	Click New.
3.	In the Name field, type a value.
4.	In the Funding source field, enter or select a value.
5.	In the Sales currency field, enter or select a value.
6.	Click OK.
7.	Expand the Government contracting section.
8.	In the Subcontract number field, you can enter a value.
9.	In the Prime contract number field, you can enter a value.
10.	In the Customer PO number field, you can enter a value.
11.	On the Action Pane, click Plan.
12.	Click Indirect cost plan.
13.	Click Apply Indirect Cost Plan to open the drop dialog.
14.	In the Indirect cost plan field, enter or select a value.
15.	Click OK.
16.	Click Save.
17.	Close the page.