according to below link
Consumed item/link to order
If you select the consumed item/link to order method, you can link the project to an item requirement. By using this method, you can view actual project costs when the production has a status of Started or is reported as Finished. The costs are posted as multiple project item transactions for raw materials and hours consumed for production. When the packing slip is updated for the item requirement, no project costs are posted. You can also define the level in the BOM hierarchy at which projects in the production are tracked. You can create the hierarchy in the BOM line form by choosing Pegged supply in the Line type field and selecting the Set subproduction to Consumed check box. This procedure creates the subproductions for your hierarchy.
but customer has below contention with the scenario
we see the design wrong , that I can only invoice time spent and costs incurred during production. This behavior disregards the setting on billable/non-billable on the item requirement line. Which I see as problematic, as users set up items as billable but they will never be invoiced. And there is no way to invoice these items once they are delivered.
We’re now missing a tool for project controlling too. The customer has in one project several production orders with production times greater than 30 weeks. Using posting method “consumed” we were able to track all costs directly on the project. Now we’ll have to switch to posting method “report as finished” to invoice the finished item. Concerning project controlling, we’ll have some of the costs on the project and have to get actual costs from price calculation on all production orders. Putting all of these data together to check budget, estimated and actual project costs will have to be done outside AX. In AX all costs are on the project when all production items are delivered. This is too late for controlling purposes.