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Handling and purchasing of external resources

DYCE Project Billing provides the option, in conjunction with Projects and services, to have these services performed by people outside of your own organization. The purchase of these external resources is handled via a Blanket Purchase Order together with resources set up properly. If necessary, Project-specific conditions can be stored in the Blanket Purchase Order. The following section outlines an example process flow.

Basic process

  1. The resource of the external employee is linked to the corresponding vendor. For this purpose, the Vendor No. is entered in the resource card.
  2. A Blanket Purchase Order is created for the vendor that was linked to the resource in the previous step, whereby the resource, the expected order quantity, the purchase price and the Project (Project Reference) are entered in the line. The Blanket Purchase Order can be sent to the vendor (or the external employee / freelancer) if required.
  3. Either the external employee records his times for himself (e.g. in the DYCE Web App) or he sends proof of service at the end of the month. In the latter case, the Project No., Project Task, quantity, date and Blanket Purchase Order No. must be included here. Based on the proof of service, the Project Office creates corresponding Time Recordings (on behalf of the external employee).
  4. When entering the Time Recordings, the system checks if there is already a Blanket Purchase Order Line No. for the combination of Resource and Project and suggests it.
  5. When the Project Manager checks and releases the Time Recordings, the system automatically checks to see if a Blanket Purchase Order No. is entered on all lines. If not, a number can be entered.
  6. Time Recordings are posted and Project Ledger Entries are created (type Usage). At the same time, a check is made to see if there is a corresponding line in a Blanket Purchase Order for the external resource. The reference to this purchase order line is created in the Project Ledger Entries.
  7. A Purchase Order for the Blanket Purchase Order is generated using the Create Purchase Orders function (via Process in the Project Billing page, among others). In this process, the Time Recordings of the external resource are summarized based on the Project. In the Time Recordings, the purchase order number and the purchase order line number are stored.
  8. The Time Recordings of the internal and external employees are charged to the customer. When the Sale Project Ledger Entry is generated, it is marked (via the link to Usage Project Ledger Entry) as Accrual Required. However, only if the related purchase order line has not yet been invoiced at that time.
  9. Accruals must be created for Customer revenues from external employees for which costs have not yet been posted. To do this, a job runs through all purchase order lines and checks the associated Project Ledger Entries to see whether accruals are necessary for this. For these Project Ledger Entries, a line is created and posted in the accounting ledger sheet. With the posting, the indicator in the Project Ledger Entries is reset.
  10. When the incoming invoice from the vendor arrives, it is checked and posted. If there is a posted accrual at this time, then it is released with a corresponding offsetting entry. If there is no accrual at this time, then no change is necessary. The actual purchase price is updated in the Usage Project Ledger Entries.
Purchase Price from Blanket Purchase Order

The purchase price used in the purchase order is the same as the purchase price from the Blanket Purchase Order. When time recordings are posted for external resources, the unit costs for the Usage Project Ledger Entries are transferred from the purchase price of the Blanket Purchase Order line in each case.

Notes on Purchase Orders and Accruals

In the Role Center Project Administrator there are two tiles Purchase Orders required and Accrual required under the heading Purchase Orders.
If a Time Recording is posted for an external resource (for which a corresponding Blanket Purchase Order has been found) for which no Purchase Order exists yet, this will be displayed in the Purchase Orders required tile. Clicking on the tile opens the overview of the records in the page of the same name. The purchase orders can be created via the Create Purchase Orders action (Process action group) and then posted (see point 6 in the previous section). Alternatively, purchase orders can be created using the action of the same name in Project Billing.
If a Service provided by an external employee has already been invoiced to the customer before the vendor's invoice has been received, this will be indicated in the Accrual required tile. Clicking on the tile opens the overview of the records in the page with the same name. The accruals can be created first as lines in a accounting ledger sheet via the Start Accrual Posting Project action (Process action group) and then posted (see point 8 in the previous section).


To create an accrual, the purchase order must already have been created. However, the purchase order does not have to be posted in order to create the accrual.