How To Allocate Purchase Orders To Projects in Sage 200

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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.

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How To Allocate Purchase Orders To Projects in Sage 200