Posting indirect cost in the Project management and accounting module of D365FO (or AX)

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Dynamics 365 Finance

The article explains how to automatically post indirect costs in the Project management and accounting module in Dynamics 365 Finance and Operations (D365FO).
It provides an example of posting 1% of the cost price of testing hours as indirect costs to cover administrative expenses.
The setup involves creating a shared category for indirect costs that can be used in the Project module.
A project category is created from the expense transaction type and set up with the shared category and category group, with the option for indirect cost component enabled.
Indirect cost settings are then configured, including the creation of an indirect cost component for the administrative costs and an indirect cost component group.
In the indirect cost component group assignment rules, the calculation of indirect costs is specified for all projects involving hours posted on the 'Test' project category.
When posting hours for the 'Test' category, the indirect cost component group is linked, and the calculated indirect cost is added to the total cost amount.
The posted transactions of the project reflect the standard cost price of the hours and the additional indirect cost amount.

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