Microsoft Dynamics AX Project Funding Sources (Part 1)

This blog is part one of a two-part series reviewing funding within a Project Contract.  In part one we will be reviewing funding sources. A funding source is exactly as it sounds, the source of where the money is coming from for a project. Usually a customer is the source of funding, but there are many scenarios where that may not be the case or where you would have multiple sources of funding.

If you’re working with a large organization which require the tracking of spend and issuance of funding based on department, you can create a funding source for each department. Another scenario where you may want to use multiple funding sources is when a customer wants to pay for a portion of the work on a project (say the hours) and the customer is requiring their sub-tier to pay for the other portion. In this case you can create two funding sources and charge each company with their portion. In part two we will review exactly how to separate the charges.

Funding Source Records

A Project Contract is required prior to creating and working on projects. When a Project Contract is created, the system automatically creates a funding source – because a project always needs funding!

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

Common Project Contracts Dynamics AX

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

Project Contract Funding sources dynamics ax

  • A Funding Source will be listed, but will have minimal information. To update the source’s set-up, select the Details Button.

Funding source details button

  • Within Details you can select the Invoice Address (this is what will appear on your project invoices), Payment Details, Financial Dimensions and provide other information regarding the funding.
  • Back on the Funding Source Tab, you can select the default invoice format for the funding source.

default invoice format dynamics ax

  • Should you need to create additional funding sources, select the New Button and fill-in the line item from left to right.

funding type customer dynamics ax

  • Funding Type can be: Customer (the most common scenario), an Organization, a Grant or the funding can be placed On Hold.
  • Depending on your selection, you will then need to fill in the required fields. Example: for Customer you will then need to select a Customer record.
  • Hint: Before you get to this step make sure you’ve created all of your organizational records or you won’t be able to move forward.
  • After selecting your customer or organization, the fields for Funding Source ID and Invoice Address will populate (these are editable). You can then proceed with updating the source as described above.

How to assign funding amounts and distribute funding across multiple sources will be reviewed in part two of this blog series.

 

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