1. To-Increase Dynamics 365 for Finance & Operations
  2. Government contracting
  3. Manage projects

Create project contracts

You can create project contracts from several places in D365 FO. This process only shows how to create a basic project contract and how to add the related government contracting information, including an indirect cost plan. For more information, refer to Project contracts. 


Contracts specialist Contracts specialist Liaison of contractors and the government. They work with the contracting officer in negotiation, contract mods, contract closeouts. Start Start Create project contract with indirect cost plan Create project contract with indirect cost plan 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. 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. Add provisional rates to indirect cost plan Add provisional rates to indirect cost plan Add provisional rates to the indirect cost plan of the project contract. These provisional rates serve as default for manually created projects and project quotations. For more information on provisional rates, please refer to the Information for Contractors Manual published by the DCAA.  Procedure 1. Go to Project management and accounting > Projects > Project contracts. 2. On the list page, find and select the project contract. 3. On the Action Pane, click Plan. 4. Click Indirect cost plan. 5. In the list, select the cost pool. 6. Click Assign provisional rate. 7. In the Provisional rate field, enter a number. 8. Click Save. Add ceiling rates and limits Add ceiling rates and limits Set up ceiling rates and limits for the indirect cost plan of the project contract. These ceiling rates and limits serve as default for manually created projects. The rates are calculated in this sequence: ceiling rate, provisional rate, target rate. If no ceiling rate is defined, the provisional rate is calculated. If no ceiling rate or provisional rate is defined, the target rate is calculated. Procedure 1. Go to Project management and accounting > Projects > Project contracts. 2. In the list, find and select your project contract. 3. On the Action Pane, click Plan. 4. Click Indirect cost plan. 5. In the list, select the cost pool. 6. Click Assign ceiling rate. 7. In the Ceiling rate field, enter a number. 8. Click Assign ceiling limit. 9. In the Ceiling limit field, enter a number. 10. Click Save. End End

Activities

Name Responsible Description

Create project contract with indirect cost plan

Contracts specialist

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.

Add provisional rates to indirect cost plan

Contracts specialist

Add provisional rates to the indirect cost plan of the project contract. These provisional rates serve as default for manually created projects and project quotations. For more information on provisional rates, please refer to the Information for Contractors Manual published by the DCAA. 

Add ceiling rates and limits

Contracts specialist

Set up ceiling rates and limits for the indirect cost plan of the project contract. These ceiling rates and limits serve as default for manually created projects. The rates are calculated in this sequence: ceiling rate, provisional rate, target rate. If no ceiling rate is defined, the provisional rate is calculated. If no ceiling rate or provisional rate is defined, the target rate is calculated.

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