How to allocate purchase orders to projects

In Sage 200, you can allocate items on your purchase orders to your projects. You do this by entering details of relevant project and project item in the Project Analysis section of the purchase order.

The costs of the purchased items are then posted to your projects when the purchase order is processed. How these costs are posted to the project depends on the type of item you are purchasing.

Stock items

The costs are posted to the project when the stock item is issued to the project, and not when the invoice is recorded.

  • When the stock items are recorded as received in Sage 200, they are allocated to the project. A committed cost is posted is the project.
  • When the stock items are issued to the project, the actual cost is posted to the project. A nominal transaction is posted to the nominal ledger.
  • When the purchase invoice is recorded for stock items, no project analysis is entered as the project costs have already been processed.

This allows you to change the allocation of stock items after a purchase order has been processed.

For example, you order an item intended for a project. The item is recorded as received into stock and is allocated to the project. You have a sales order waiting for this item that is more important, so you change the allocation of the item and allocate it to the sales order. When the purchase invoice is recorded no further action is required, as the project analysis is not applied at this stage.

Free text items

Free text items are not added to stock and therefore cannot be issued. The costs for free text items are posted to the project when the invoice is recorded.

  • When the free text items are recorded as received in Sage 200, a committed cost is posted to the project.
  • When the purchase invoice is recorded for free text items, the project analysis details are automatically entered on the invoice. The actual cost is posted to the project. A nominal transaction is posted to the nominal ledger.

What do you want to do?

  1. Enter a purchase order line for the stock item.

  2. Enter the Project and Project item in the Project Analysis section on the purchase order line.

    The Nominal Analysis retains the Stock nominal account specified on the stock item record.

  3. Record the goods as received:

    • The item is recorded into stock.
    • The stock item is allocated to the project.
    • A committed cost transaction is created for the project item in the project.
    • No transactions are posted to the nominal ledger at this point.

  4. Issue the allocated stock item to the project in the Stock Control module:

    • The committed cost transaction, for the project item, is changed to zero.
    • An actual cost transaction for the same project item, is posted to the project.
      • If you issue stock items to the project before you know the actual cost of the stock items, the average price is used to calculate the cost that is posted.

    • A transaction is posted to the nominal ledger.

      This debits the Expense nominal account specified for this project item on the Costs and Charges tab for the project. It credits the specified Stock nominal account for the Analysis tab for the stock item.

  5. Record the purchase invoice. Do not enter Project Analysis details on the invoice.
    • The Nominal Analysis defaults to the Stock nominal account specified in the Nominal Analysis section on the purchase order line. You can change this, if required.
    • A purchase invoice is posted to the nominal ledger.
      • If you confirm the stock price during purchase invoice entry, and there is a discrepancy between this and the cost posted when stock was issued to the project, a Confirmed Price Adjustment transaction is created automatically in the project for any difference.

As a free text item does not get added to stock, you can only record the cost against the project when invoice is recorded. Therefore, Sage 200 automatically adds the relevant project analysis when the invoice is recorded.

  1. Enter a purchase order line for a free text item.

  2. Enter the Project and Project item and in the Project analysis section of the order.

    The Nominal Analysis retains the Expense nominal account specified for the project item on the project. You can change this, if required.

  3. If required, record the free text item as received.
    • A committed cost transaction is entered for the project.

  4. Record the purchase invoice for the free text item:

    5. The Project Analysis details are retained from the purchase order line. You can change this, if required.

    The Nominal Analysis is copied from the Project Analysis.

    The following transactions are entered:

    • An actual cost transaction is entered for the project.
    • A purchase invoice is posted to the nominal ledger.
See also

Steps in this task

Add standard items to the purchase order

Add goods and services to the purchase order (free text items)

Confirm goods received

Confirm services received

Issue allocated stock (non traceable item)

Recording invoices for purchase orders

Reference

Analysis details (stock record)

Enter or amend costs and charges for projects