Flows

Flow	Description
Create project contracts	You can create project contracts from several places in D365 FO. This process only shows how to create a basic project contract and how to add the related government contracting information, including an indirect cost plan. For more information, refer to Project contracts.
Set up cost pools	Set up the cost pools that are used in the indirect cost plans. Make sure to create at least one cost pool of type Indirect and one cost pool of type Direct. Note: On indirect cost plans, account structures are related to the cost pools. Therefore, you are recommended to consider your cost pool set up when you design the account structures. Make sure, the used account structures are active. The account structures used for cost pools do not interfere with standard D365 FO General ledger functionality. Do not assign these account structures to the Ledger page.
Set up general Government contracting settings	Before you can use Government contracting, set up the relevant parameters and other Government contracting settings.
Set up indirect cost plan	Set up indirect cost plans to simulate and determine the indirect cost composition and target rates as required by FAR Subpart 31.2-Contracts with Commercial Organizations. To set up an indirect cost plan, you need the setup for: Unallowable costs Account structures Cost pools When active, you can assign an indirect cost plan to project contracts, project quotations, and projects.
Set up unallowable costs	Define which general ledger accounts are unallowable for project contracts and projects.