Project use case scenarios in Microsoft Dynamics 365 Finance and Operations one version D365FO

Project type

Description

Time and material

Bill customers for hours, expenses, items, and fees.

Take actuals and charge it to customers.

Commonly used in consulting, IT, EPC projects.

Cost and revenue can be posted directly to P&L (Profit & Loss) or to BS (Balance sheet) first and then move to P&L.

Revenue is usually added as margin on cost.

Fixed-price

Customer invoice is based on a billing schedule.

Cost incurred via hours, expenses, item are loaded on project financials (mostly P&L)

Revenue needs to be calculated and posted using completed percentage or upon project completion using completed contract method.

Cost can be posted to WIP (work in progress) in BS and upon revenue recognition to P&L

Use case scenarios involve companies billing fixed amount to customer and managing their cost and profitability separately.

Investment

Used when costs are to be capitalized.

Costs for items, hours, and expenses are recorded in WIP accounts in BS

When project is completed and eliminated, WIP amount can be transferred to a fixed asset, a ledger account, or a new project.

Cost project

Used to track internal projects

Cost capturing is done for hours, expenses and items.

Cost projects can’t be capitalized to BS, Instead, posted directly to P&L. 

Internal

Internal projects are used to track costs on a project that is internal to your organization.

Time

Time projects are used to track time that is associated with non-chargeable and non-productive activities.