Project Operations #3: Organizational Units

Microsoft Dynamics 365 Project Operations, an Organizational Unit is a distinct group or division in a professional services company that billable resources that have cost rates.

Organizational Unit has specific currency and specific cost price lists. The currency of an organizational unit is the primary currency that is used to track costs, and we can add one more cost price list.

Each resource can be assigned to one organizational unit.

Organizational Onit plays two roles in Project Operations:

• Contracting unit – The organizational unit that represents the company group or division that is primarily responsible for winning the sale and managing the delivery of work and services to the customer. The contracting unit is identified by the Contracting Unit field in the header section of the Opportunity, Quote, Project Contract, and Project pages.
• Resourcing unit – The organizational unit that a resource belongs to or is assigned to. This organizational unit can provide its resources for some roles on statements of work (SOWs) and projects that are owned by the contracting unit.

Organizational units hierarchical in Project Operations

a complex hierarchy of cost centers, divisions, billing offices, and so on, set up the leaf nodes of that hierarchy as distinct organizational units.

Company India

• Dynamics 365 Practice
  • Technical Consultants
  • Functional Consultants
• Microsoft Technology Practice
  • Technical Consultants
  • Functional Consultants

Company US

• Power Platform Practice
  • Technical Consultants
  • Functional Consultants
• Microsoft Technology Practice
  • Technical Consultants
  • Functional Consultants

The hierarchy must be set it up as a flat list, as shown here:

• Company India – Dynamics 365Practice – Technical Consultants
• Company India – Dynamics 365 Practice – Functional Consultants
• Company India – Microsoft Technology Practice- Functional Consultants
• Company India – Microsoft Technology Practice -Functional Consultants
• Company US – Power Platform Practice – Technical Consultants
• Company US – Power Platform Practice – Functional Consultants
• Company US – Microsoft Technology Practice – Technical Consultants
• Company US – Microsoft Technology Practice – Functional Consultants

Why NOT sales price lists in organizational units?

Project Operations, sales price lists can be associated with customers and sales territories. Transactional entities such as Opportunity, Quote, Project Contract, and Project use sales price lists that are attached to the customer account or the sales territory to determine bill rates and potential revenue for the project engagement.

Cost price lists are associated with organizational units. Transactional entities such as Opportunity, Quote, Project Contract, and Project use cost price lists that are attached to the contracting unit to determine costs to a project engagement.

Create and maintain organizational units

1. login to Project Operations.
2. Change the site map area to settings.
3. Click On organizational units.

4. Click on New on the ribbon to create a new organizational Unit.

5. Give the name of the organizational unit and select the currency of the organizational Unit.

6. Clik on save.

7. Add the Cost Price List (s) to the organizational Unit.