Dynamics Community Forum Thread Details

Hi,

Checklist generated by AI. However, I have verified it based on my experience, and it appears to be correct.

Project Closure Checklist – Dynamics 365 Finance

1. General Project Closure Activities (Applicable to All Project Types)

Project Setup Validation

Confirm project status is updated appropriately:
- In process → Finished / Completed
Verify project stages and lifecycle approvals are completed.

Ensure project manager approval is received.

Confirm no active workflows remain open.

Transaction Validation

Ensure all pending transactions are posted.

Review and validate:
- Hour journals
- Expense journals
- Item consumption
- Vendor invoices
- Fee journa

Check for unposted journals:
- Project journals
- Invoice proposals
- Pending vendor invoice

Financial Review

Validate:
- Project Cost posted correctly
- Revenue recognized correctly
- WIP balances cleared where applicable

Reconcile:
- Project subledger vs General ledger
- Customer balances
- Vendor balances

Review exchange rate adjustments for foreign currency projects.

Procurement & AP Review

Confirm all purchase orders linked to project are:
- Invoiced
- Closed/cancelled

Ensure subcontractor/vendor invoices are posted.

Validate accrual reversals completed.

Resource & Timesheet Closure

Ensure all employee timesheets submitted and approved.

Confirm no future bookings/resources assigned.

Remove remaining forecast assignments if applicable.

Document & Audit Readiness

Archive:
- Contracts
- SOWs
- Change requests
- Customer approval

Validate attachments and document references.

Export project reports if required for audit.

2. Time & Material (T&M) Project Closure Checklist

Revenue & Billing Validation

Ensure all billable transactions are invoiced:
- Hours
- Expenses
- Items
- Fees

Review invoice proposals for:
- Missing transactions
- Write-offs
- Markups

Confirm final customer invoice posted.

Billing Controls

Verify no transactions remain with:
- Chargeable = Yes but not invoiced
- On-hold invoice statu

Validate sales tax/VAT calculations.

WIP & Accruals

Clear WIP balances if organization policy requires.

Review accrued revenue entries.

Ensure revenue recognition completed.

Project Estimate Validation

Compare:
- Actual cost vs budget
- Actual revenue vs forecast
- Utilization vs planned effort

Final Financial Close

Run project statements:
- Profitability
- Consumption
- Transaction detail

Close project financially.

3. Fixed Price Project Closure Checklist

Milestone & Estimation Review

Ensure all milestones completed and approved.

Validate completion percentage.

Confirm estimate project updated fully.

Revenue Recognition

Verify revenue recognition entries posted:
- Completed contract method OR
- Percentage of completion metho

Confirm no deferred revenue remains incorrectly.

On-Account Transactions

Validate all on-account/customer advances settled.

Ensure retention amounts processed if applicable.

Estimate Elimination

Run estimate process one final time.

Verify:
- Cost-to-complete
- Accrued revenue
- Estimated profit

Confirm estimate status finalized.

WIP & Balance Review

Ensure:
- WIP cleared appropriately
- No remaining committed cost
- No pending procurement

Final Invoice Validation

Confirm final milestone invoice issued.

Validate contract value fully billed.

Review retention release invoices if used.

4. Recommended Reports Before Closure

In Microsoft Dynamics 365 Finance review:

Project statement

Profit and loss by project

WIP report

Open transaction report

Hour utilization report

Estimate report

Committed costs report

Customer aging

Vendor aging

Revenue recognition report

5. Recommended System Controls Before Marking Project Completed

Suggested Validation Rules

No open purchase orders

No unposted journals

No pending invoice proposals

No active forecasts

No remaining committed costs

No draft timesheets/expenses

••Project balance reconciled to GL

Cheers,

Burhan

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