Create a new function in the Project accounting module where you could create on-hand inventory quantities as a result of the costs that have been collected in the project.

Some companies perform their "production" activities in the Project accounting module instead of the Production control module. This is quite common in non-standard or design build type manufacturing.

However, there is no easy function in the Project accounting module that would create on-hand inventory. You can always do a negative Project item journal, but you have to enter the cost amount and it isn't automatic.

An option would be to use the Estimation process and "eliminate" the project to inventory. However, that process is often too lengthy. It would be more straightforward to have a simple convert project cost to inventory function.