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Small and medium business | Business Central, N...
Answered

How to create invoice in the Project of software dev.

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Posted on by 1,249
Hi all.

I would like to ask how to create invoice in the Project of software development.
I created a quotation for one month at 1,000,000 JPY  below, and received the order.

The engineer’s working hours are managed using timesheets, and they were posted with Line Type = "Budget."


For invoicing, I will use “Invoice from Project” and invoice the fixed amount of 1,000,000 JPY as quoted. TAX = 10%, not actual resource cost.


 

In this case, the cost (actual cost) posted from the timesheets will not be reflected in the “Project Profitability” graph under Insight on the top page, correct?

If the engineer’s working hours are managed via timesheets and posted with Line Type = "Budget & Billable," will the cost (actual cost) posted from the timesheets be reflected in the Insight “Project Profitability” graph?

However, since I want to invoice the fixed amount of 1,000,000 JPY as quoted using “Invoice from Project,” the invoice amount is not based on the actual resource costs incurred.




Look forward to your advice.

Nobuhara
I have the same question (0)
  • Suggested answer
    OussamaSabbouh Profile Picture
    12,965 Super User 2026 Season 1 on at
    Hello Nobuhara,
    If you post timesheets as Budget only, they do not create actual project ledger entries, so no actual cost will appear in the Project Profitability graph. If you post timesheets as Billable (or Budget & Billable), they generate actual cost entries and those costs will be reflected in Project Profitability. Your fixed-price invoice of 1,000,000 JPY is independent of actual cost — revenue comes from the project planning line, while cost comes from posted resource usage. For correct profitability on a fixed-price software project, post timesheets as Billable (to record cost) and invoice using the fixed amount from the project.
    Regards,
    Oussama Sabbouh
  • Verified answer
    Ben Baxter Profile Picture
    6,918 Super User 2026 Season 1 on at
    Don't do any of that AI recommendation.  Post the Timesheet lines, via the Project Journal, with a Line Type = Blank.  This will create Project Ledger Entries, which is your actual cost.  If the Line Type defaults to Budget because of how the Timesheet lines were created, it will still create Project Ledger Entries when they are posted via the Project Journal.
     
    Do not use "Budget and Billable", there is only one scenario where that Line Type makes sense, and almost no one operates in that scenario.
     
    Best Regards,
    Ben Baxter
    Accent Software Inc
  • Suggested answer
    Dhiren Nagar Profile Picture
    2,898 Super User 2026 Season 1 on at
    Hi,
     
    I agree with Ben Baxter.
     
    The correct approach is to use Budget as Line type while posting time sheet.
     
    As regards to the chart, I need to check how the chart calculates the Profitability.
     
    Also curious on what Project WIP method you are using? Completed contract, POC, Cost of Sales??
     

    Tick the checkbox below to mark the answer as verified, if it helped resolve your question.

    Regards,
    Dhiren.
     

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