Microsoft Dynamics AX Project Funding Limits and Rules (Part 2)

This blog is the second half of a series reviewing funding within a Project Contract (See part 1 here). In this section we will be reviewing funding limits and funding rules. A funding limit holds the amount of money each funding source has allocated to it. Funding rules tell the project transaction which funding source to be allocated against. Utilizing funding limits and rules can allow you to be very flexible with your project transactions and invoicing; like automatically splitting the cost of a transaction between two customers.

Funding Limits

Once you’ve completed the creation of your funding source(s) – see part one of this blog series – you’re ready to assign the limit information.

To get started, navigate to Project Management and Accounting -> Common -> Projects -> Project Contracts

project funding limits and rules project contracts dynamics ax

  • Find and open your Project Contract.  There will be a Fast Tab called Funding Limits.

As seen in AX 2012:

funding limits tab dynamics ax 2012

As seen in AX 7:

funding limits tab dynamics 365 operations

  • Add a new line for a Funding Limit and then add the details as to what the funding is for.
    • You must always select a funding source for the limit to be tied to.
    • The funding limit will default to being for all transactions.
    • You can clarify further what the funding is for by selecting:
      • A project and if you’ve selected a project you can then drill down further to an activity.
      • Transaction Type – limiting the funding to hours, expenses, items
      • Category
      • Worker
      • Item Number
  • Hint:  You can select complete more than one of these fields
  • Once you’ve outlined what the funding is for, then you add the funding amount
    • The funding amount is the limit to which you’re allowed to post charges against this funding source.
    • Should you try to post a transaction and that transaction will put you over the funding limit, you will not be able to post.
  • Committed Amount is the amount in project transactions that you have posted, but have yet to be invoiced.
  • Spent Amount is the amount in project invoices that have been issued against the Funding Limit.
  • The Committed and Spent Amount Fields are not editable – they updated based on the transactions.
    • Hint:  be sure to set up the funding limit before posting any transactions.

Funding Rules

Now that you have created your Funding Source and tied it to a Funding Limit, you’re ready to review and create Funding Rules.

Every Project Contract requires at least one Funding Rule.  It’s automatically created when the Project Contract is created (similar to the auto creation of the Funding Source).  The automatic Funding Rule is allocated to the automatic Funding Source.

  • In the Project Contract, there will be a Fast Tab called Funding Rules.
  • The default rule is listed as Priority 1 and for All Transactions

As seen in AX 2012:

funding rules fast tab dynamics ax 2012

As seen in AX 7:

funding rules fast tab dynamics 365 operations

  • Then select the Allocation Button to see the Funding Source that is tied to the selected rule.

As seen in AX 2012:

dynamics ax funding rule allocations

As seen in AX 7:

dynamics 365 for operations funding rule allocations

  • Funding rules allow you to be extremely flexible when you have multiple funding sources.  For each scenario you will want to create a new rule.
  • Start with your Priority.  Number 1 is the top priority, meaning if there is a project transaction fitting the priority 1 requirement, that is the allocation the transaction will go to.  If the transaction does not fit into a Priority 1 Rule, the system will then look to Priority 2 and so on until there is a rule fitting the transaction.
    • Hint: If there is not a rule for the transaction to fit, you will receive an error message that the funding cannot be allocated.
    • Hint: You can have multiple Funding Rules for each priority level.
  • Then select the criteria for the rule by filling in one or more of the following columns:
    • Project
    • If you’ve selected a project, you can then drill down further to an Activity
    • Transaction Type – limiting the funding to hours, expenses, items
    • Category
    • Worker
    • Item Number
  • There are also columns for Start Date and End Date.  These columns do not need to be completed, but again, add flexibility to your rules.
    • Hint:  You can complete just the Start Date or just the End Date depending on your needs.
  • Once the rule is created, open the Allocation.  You need to select at least one Funding Source with 100% allocation.
  • Another way to be flexible with Funding Rules is the division of allocation.  As an example, your project is for training and the customer has two departments that are splitting the cost, you can create one Funding Rule that has two allocations (50/50 split).
    • To do this, make two lines in the allocation
    • Check off the rounding boxes
    • Then select the button for distribute equally

division of the allocation funding rules dynamics ax

  • Hint: if the split is not equal, you can manually change the allocation on each line, but the lines MUST equal 100%

Setting up funding sources, funding limits and funding rules allows for flexibility in the project and ultimately an ease in invoicing your customer accurately.

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