Sales order in project module

Hi All ,

Ax 2012 R2 .

When user created a purchase order with stocked item for FP or T&M Project and then click on the general tab reference button of the PO - it will create the sales order against this purchase order in Ax 2012 R2 .

Can i know why it is automatically creating the sales order for purchase order ?

what is the purpose of this sales order ?

Thanks in advance

That is because you have ticked Create item requirement under Project purchase order section of the Project management and accounting parameters form.

The setup basically creates the sales order (of type: item requirement) to reserve an amount of material or number of items for consumption against the project.