How to post Fixed Bid and Time & Material-based invoices in Dynamics 365 Finance and Operations from Project Operations

September 23 2020

We recently examined how the contract and milestones flow between Microsoft Dynamics 365 Customer Engagement and Finance & Operations in the integrated scenario supported by Dynamics 365 Project Operations. The next step is to post the Milestones or the Approved Time entries (in case of T&M-based projects) in Dynamics 365 Finance and Operations (D365FO).

Milestone-based Invoice posting

Let’s looks at first Milestone-based Invoice posting in D365FO for a Fixed Bid Project. (Note: How to log in to the environment is shown in my previous blog in the link above.)

Step 1:

Login to the Dynamics 365 Customer Engagement (CE) Project Operations environment, navigate to the Milestone that you need to Invoice, and flip the status to “Ready for invoicing”.

Step 2:

The invoice is created in the CE environment and you need to confirm the same.

Upon confirming the invoice, the integration pushes the invoice data to the D365FO environment.

Step 3:

Navigate to D365FO environment and go to Project Management and Accounting-->Import from staging table.

This will import all the transactions available in the staging area to D365FO environment.

Step 4:

At this juncture the Invoice is now posted to the D365FO environment.

To check the same in D365FO environment navigate to Project Management and Accounting Module-->Pending project transactions

You can see the Invoices milestone below.

Step 5:

Select the invoice and click on Post. This is when the invoicing of the milestone is completed. This step is recommended to be performed by the Accounts Manager.

Invoicing Time and Material projects

Now we shall examine the steps required to invoice Time and Material projects.

Step 1:

Navigate to CE environment and get some time entries done on the T&M project as shown below.

Step 2:

Submit the time entries done by clicking the Submit button as shown below.

The status of the time entries changes to Submitted from Draft status.

Step 3:

The project manager will now have to approve the time entries submitted from the Approvals tab.

Step 4:

As soon as the time entries are approved, they are integrated and reside in the staging area of D365FO.

You then need to import all the time entries from the staging area.

Navigate to D365FO environment and go to Project Management and Accounting-->Import from staging table.

This will import all the transactions available in the staging area to D365FO environment.

Step 5:

Navigate to Project Management and Accounting-->Project Operation integration journal where all the approved time entries in CE environment get collected.

Please understand that if there is an active Journal existing in D365FO, then all the approved time entries for all the projects will be integrated to the same Journal, unless all the entries in that integration journal is approved.

Step 6:

Select the Journal from the below and click on the Post button from Ribbon. This will post all the transactions from the Journal, which also the final step that the Accounts Manager will perform to do the invoicing.

The above methods can ensure that the milestones and the time entries for FP and T&M projects, respectively, are done. These operations are prescribed to be done by the Accounts Manager.

So ends the process of posting the invoice in the D365FO environment.

This article is written with the best possible knowledge of Project Operations and practical experience.

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About Kuldeep Gupta

Kuldeep Gupta is a Microsoft MVP. 

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