How to allocate Purchase Orders to Projects in Sage200

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 in 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?

Purchase a stock item for a Project

  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.
  3. Record the goods as received.

The following transactions are created in Sage 200:

  • 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 following transactions are created in Sage 200:

  • The committed cost cost transaction, for the Project item, is cahanged to zero.
  • An actual cost transaction for the same project item, is posted to the Project.
  • A transaction is posted to the Nominal Ledger.
    This debits the Expense nominal account specified for the Project item on the Project. It credits the specified Stock nominal account for the stock item.

     5.  Record the Purchase Invoice. Do not enter Project analysis details on the invoice.

Purchase a free text item for a Project

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.
  3. If required, record the free text item as received.
  4. Record the Purchase Invoice for the free text item. The Project analysis details are automatically added to Project Analysis section.